Imports, supply chains and firm productivity

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

Standard

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

In: World Development, Vol. 172, No. 106371, 12.2023.

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

Harvard

Rand, J, Tarp, F & Newman, C 2023, 'Imports, supply chains and firm productivity', World Development, vol. 172, no. 106371.

APA

Rand, J., Tarp, F., & Newman, C. (2023). Imports, supply chains and firm productivity. World Development, 172(106371).

Vancouver

Rand J, Tarp F, Newman C. Imports, supply chains and firm productivity. World Development. 2023 Dec;172(106371).

Author

Rand, John ; Tarp, Finn ; Newman, Carol. / Imports, supply chains and firm productivity. In: World Development. 2023 ; Vol. 172, No. 106371.

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 = "John Rand and Finn Tarp and Carol Newman",
year = "2023",
month = dec,
language = "English",
volume = "172",
journal = "World Development",
issn = "1873-5991",
publisher = "Pergamon Press",
number = "106371",

}

RIS

TY - JOUR

T1 - Imports, supply chains and firm productivity

AU - Rand, John

AU - Tarp, Finn

AU - Newman, Carol

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.

M3 - Journal article

VL - 172

JO - World Development

JF - World Development

SN - 1873-5991

IS - 106371

ER -

ID: 381797185