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Imports, supply chains, and firm productivity

Carol Newman (), John Rand () and Finn Tarp ()

No 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 Viet Nam, 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. Ignoring the gains from trade through this mechanism may significantly underestimate the impact of trade on productivity.

Keywords: imports; supply chains; productivity; Viet Nam (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-eff, nep-int and nep-sea
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
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Persistent link: https://EconPapers.repec.org/RePEc:unu:wpaper:wp2016-090

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