Imports, supply chains and firm productivity

Research output: Contribution to journal › Journal article › Research › peer-review

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Imports, supply chains and firm productivity. / Newman, Carol; Rand, John; Tarp, Finn.

In: World Development, Vol. 172, 106371, 12.2023.

Research output: Contribution to journal › Journal article › Research › peer-review

Harvard

Newman, C, Rand, J & Tarp, F 2023, 'Imports, supply chains and firm productivity', World Development, vol. 172, 106371. https://doi.org/10.1016/j.worlddev.2023.106371

APA

Newman, C., Rand, J., & Tarp, F. (2023). Imports, supply chains and firm productivity. World Development, 172, [106371]. https://doi.org/10.1016/j.worlddev.2023.106371

Vancouver

Newman C, Rand J, Tarp F. Imports, supply chains and firm productivity. World Development. 2023 Dec;172. 106371. https://doi.org/10.1016/j.worlddev.2023.106371

Author

Newman, Carol ; Rand, John ; Tarp, Finn. / Imports, supply chains and firm productivity. In: World Development. 2023 ; Vol. 172.

Bibtex

@article{f91118cb805f467fba6fdbcf43609698,
title = "Imports, supply chains and firm productivity",
abstract = "This paper explores how competition-induced productivity gains from imports in intermediate producing sectors transmit through the supply chain. Based on firm-level panel data from Vietnam, we show that in addition to the productivity premium associated with importing intermediate inputs, firms that use domestically-produced inputs from more import-intensive sectors also have higher productivity. We find evidence that import competition leads to product differentiation, in particular higher quality output in sectors where there is greater scope for quality variation, leading to better quality domestically-produced inputs. We also find evidence that non-importing firms that experience productivity gains due to greater import intensity in upstream sectors change their input mix and become more capital intensive. We conclude that ignoring the gains from trade through this mechanism may significantly underestimate the impact of trade on productivity.",
author = "Carol Newman and John Rand and Finn Tarp",
year = "2023",
month = dec,
doi = "10.1016/j.worlddev.2023.106371",
language = "English",
volume = "172",
journal = "World Development",
issn = "1873-5991",
publisher = "Pergamon Press",

}

RIS

TY - JOUR

T1 - Imports, supply chains and firm productivity

AU - Newman, Carol

AU - Rand, John

AU - Tarp, Finn

PY - 2023/12

Y1 - 2023/12

N2 - This paper explores how competition-induced productivity gains from imports in intermediate producing sectors transmit through the supply chain. Based on firm-level panel data from Vietnam, we show that in addition to the productivity premium associated with importing intermediate inputs, firms that use domestically-produced inputs from more import-intensive sectors also have higher productivity. We find evidence that import competition leads to product differentiation, in particular higher quality output in sectors where there is greater scope for quality variation, leading to better quality domestically-produced inputs. We also find evidence that non-importing firms that experience productivity gains due to greater import intensity in upstream sectors change their input mix and become more capital intensive. We conclude that ignoring the gains from trade through this mechanism may significantly underestimate the impact of trade on productivity.

AB - This paper explores how competition-induced productivity gains from imports in intermediate producing sectors transmit through the supply chain. Based on firm-level panel data from Vietnam, we show that in addition to the productivity premium associated with importing intermediate inputs, firms that use domestically-produced inputs from more import-intensive sectors also have higher productivity. We find evidence that import competition leads to product differentiation, in particular higher quality output in sectors where there is greater scope for quality variation, leading to better quality domestically-produced inputs. We also find evidence that non-importing firms that experience productivity gains due to greater import intensity in upstream sectors change their input mix and become more capital intensive. We conclude that ignoring the gains from trade through this mechanism may significantly underestimate the impact of trade on productivity.

U2 - 10.1016/j.worlddev.2023.106371

DO - 10.1016/j.worlddev.2023.106371

M3 - Journal article

VL - 172

JO - World Development

JF - World Development

SN - 1873-5991

M1 - 106371

ER -

ID: 381797185