NDLI: Does importing more inputs raise exports? Firm-level evidence from France

Content Provider	Springer Nature Link
Author	Bas, Maria Strauss Kahn, Vanessa
Copyright Year	2013
Abstract	Does an increase in imported inputs raise exports? We provide empirical evidence on the direct and indirect channels via which importing more varieties of intermediate inputs increases export scope: (1) imported inputs may enhance productivity and thereby help the firm to overcome export fixed costs (the indirect productivity channel); (2) low-priced imported inputs may boost expected export revenue (the direct-cost channel); and (3) importing intermediate inputs may reduce export fixed costs by providing the quality/technology required in demanding export markets (the quality/technology channel). We use firm-level data on imports at the product (HS6) level provided by French Customs for the 1996–2005 period, and distinguish the origin of imported inputs (developing vs. developed countries) in order to disentangle the different productivity channels above. Regarding the indirect effect, imported inputs raise productivity, and thereby exports, both through greater complementarity of inputs and technology/quality transfer. Controlling for productivity, imports of intermediate inputs from developed and developing countries also have a direct impact on the number of exported varieties. Both quality/technology and price channels are at play. These findings are robust to specifications that explicitly deal with potential reverse causality between imported inputs and export scope.
Starting Page	241
Ending Page	275
Page Count	35
File Format	PDF
ISSN	16102878
Journal	Weltwirtschaftliches Archiv
Volume Number	150
Issue Number	2
e-ISSN	16102886
Language	English
Publisher	Springer Berlin Heidelberg
Publisher Date	2013-10-29
Publisher Place	Berlin, Heidelberg
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Firm heterogeneity Imported inputs TFP Export scope Varieties Firm-level data International Economics European Integration Macroeconomics/Monetary Economics Economic Policy Financial Economics
Content Type	Text
Resource Type	Article
Subject	Economics, Econometrics and Finance

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1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
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3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
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