From Firm-Level Imports to Aggregate Productivity : Evidence from Korean Manufacturing Firms Data

Author/Editor:

JaeBin Ahn ; Moon Jung Choi

Publication Date:

August 5, 2016

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Using the Korean manufacturing firm-level data, this paper confirms that three stylized facts on importing hold in Korea: the ratio of imported inputs in total inputs tends to be procyclical; the use of imported inputs increases productivity; and larger firms are more likely to use imported inputs. As a result, we find that firm-level import decisions explain a non-trivial fraction of aggregate productivity fluctuations in Korea over the period between 2006 and 2012. Main findings of this paper suggest a possible link between the recent global productivity slowdown and the global trade slowdown.

Series:

Working Paper No.16/162

Subject:

English

Publication Date:

August 5, 2016

ISBN/ISSN:

9781475523584/1018-5941

Stock No:

WPIEA2016162

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

32

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