Imports, supply chains, and firm productivity

Carol Newman, John Rand and Finn Tarp

No wp-2016-90, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This paper explores the relationship between imports and firm productivity, focusing on imported intermediates. Using firm-level data on over 20,000 manufacturing firms in Vietnam, we find evidence for competition-induced productivity gains from trade. We show that gains in intermediate sectors spill-over to downstream sectors such that firms using more inputs from import-intensive sectors experience higher productivity gains. The evidence indicates that the main source of spill-over is better quality, domestically produced inputs.

Keywords: International trade; Productivity (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (2)

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Journal Article: Imports, supply chains and firm productivity (2023)
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