Openness, Intermediate Imports and Growth

Arbeitspapier

We consider two channels via which foreign inputs into industrial production may lead to productivity effects. The first one concerns dynamic externalities between firms which share technical and organizational knowledge which is vital for the productivity growth of a particular industry. We show by which institutional mechanism firms are able to share proprietary knowledge which is of economic value for the competitor. An increase of the number of cooperating firms due to foreign direct investments leads to growth effects. The second channel of growth effects resulting from openness is derived from an increase of the imports of physical inputs due to a greater variety of inputs for final goods production.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Kiel Working Paper ; No. 996

Classification and Topics

• Classification: Wirtschaft ; International Linkages to Development; Role of International Organizations ; Innovation and Invention: Processes and Incentives ; Multinational Firms; International Business ; International Investment; Long-term Capital Movements ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
• Subject: North-South trade ; FDI ; intermediate goods ; Entwicklung ; Politik der offenen Tür ; Exportinduziertes Wachstum ; Direktinvestition ; Technologietransfer ; Vorprodukt ; Wissenstransfer ; Business Network ; Spillover-Effekt ; Agglomerationseffekt ; Urbanisierung ; Nord-Süd-Beziehungen

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kopp, Andreas
• Event: Veröffentlichung
• (who): Kiel Institute of World Economics (IfW)
• (where): Kiel
• (when): 2000

Further information

• Handle: http://hdl.handle.net/10419/17700
• Last update: 10.03.2025, 11:45 AM CET