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Import, Export and Multinationality. Evidence from Swedish Firms

Davide Castellani () and Claudio Fassio ()

No jhd-dp2016-08, John H Dunning Centre for International Business Discussion Papers from Henley Business School, Reading University

Abstract: This paper studies the role of imported inputs in explaining firms' export behaviour. Unlike most of the existing literature we are also able to control for the participation of domestic firms to multinational networks. This allows us to test to what extent the recurrent evidence that importing foster exporting activity is instead a figment of the fact that importers are also part of multinational groups. Our evidence, based on Swedish manufacturing firms, suggests that imported inputs, rather than multinationality, are a key determinant of firms' export propensity and product scope. This result is particularly strong for SMEs, and it is driven by imported intermediates and (to a lesser extent) capital goods.

Keywords: importing; exporting; multinational enterprises; Sweden (search for similar items in EconPapers)
JEL-codes: F14 F23 O52 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse, nep-int and nep-sbm
Date: 2016-11
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