From Firm-Level Imports to Aggregate Productivity: Evidence from Korean Manufacturing Firms Data
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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.
Series:
Working Paper No. 2016/162
Subject:
Imports International trade Labor Production Productivity Total factor productivity
English
Publication Date:
August 5, 2016
ISBN/ISSN:
9781475523584/1018-5941
Stock No:
WPIEA2016162
Pages:
32
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