From Firm-Level Imports to Aggregate Productivity: Evidence from Korean Manufacturing Firms Data
August 5, 2016
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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.
Subject: Imports, International trade, Labor, Production, Productivity, Total factor productivity
Keywords: Aggregate TFP growth, efficiency improvement, firm efficiency, Firm-level imports, Global, import decision, import ratio, Imports, input choice, output share, production function, Productivity, productivity estimate, Productivity pro-cyclicality, TFP decrease, Total factor productivity, WP
Pages:
32
Volume:
2016
DOI:
Issue:
162
Series:
Working Paper No. 2016/162
Stock No:
WPIEA2016162
ISBN:
9781475523584
ISSN:
1018-5941
