Imports, supply chains, and firm productivity

Arbeitspapier

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.

Object Details

• ISBN: 978-92-9256-133-8
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: WIDER Working Paper ; No. 2016/90

Classification and Topics

• Classification: Wirtschaft ; Economic Impacts of Globalization: Microeconomic Impacts ; Economic Impacts of Globalization: Economic Development ; Empirical Studies of Trade ; Microeconomic Analyses of Economic Development ; Economywide Country Studies: Asia including Middle East
• Subject: imports ; supply chains ; productivity ; Viet Nam

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Newman, Carol ; Rand, John ; Tarp, Finn
• Event: Veröffentlichung
• (who): The United Nations University World Institute for Development Economics Research (UNU-WIDER)
• (where): Helsinki
• (when): 2016

Further information

• DOI: doi:10.35188/UNU-WIDER/2016/133-8
• Handle: http://hdl.handle.net/10419/146284
• Last update: 10.03.2025, 11:43 AM CET