Artikel

Import competition and firm productivity: Evidence from German manufacturing

We study how different types of import competition affect firm productivity using firm‐product data from German manufacturing (2000–2014). Competition from high‐income countries causes affected domestic firms to increase their productivity and lower their prices. Oppositely, import competition from low‐wage countries does not lead to firm productivity gains. Instead, domestic firms' sales and input usage decline. Our findings confirm the intuition of ladder models that the effect of competition depends on the “closeness” of competitors. They are in line with widespread X‐inefficiencies throughout the economy, which firms reduce in response to competition from high‐income countries.

Language
Englisch

Bibliographic citation
Journal: The World Economy ; ISSN: 1467-9701 ; Volume: 46 ; Year: 2023 ; Issue: 8 ; Pages: 2285-2305 ; Hoboken, NJ: Wiley

Classification
Wirtschaft
Subject
import competition
multi‐product firms
productivity

Event
Geistige Schöpfung
(who)
Bräuer, Richard
Mertens, Matthias
Slavtchev, Viktor
Event
Veröffentlichung
(who)
Wiley
(where)
Hoboken, NJ
(when)
2023

DOI
doi:10.1111/twec.13409
Last update
10.03.2025, 11:45 AM CET

Data provider

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Object type

  • Artikel

Associated

  • Bräuer, Richard
  • Mertens, Matthias
  • Slavtchev, Viktor
  • Wiley

Time of origin

  • 2023

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