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Title: Imports, supply chains, and firm productivity.
Authors: Newman, Carol
Rand, John
Tarp, Finn
Keywords: Imports
Supply chains
Viet Nam
Issue Date: 2016
Series/Report no.: WIDER Working Paper, No. 2016/90;
Abstract: This paper explores the relationship between imports and firm productivity, focusing on imported intermediates. Using firm-level data on over 20,000 manufacturing firms in Viet Nam, we find evidence for competition-induced productivity gains from trade. We show that gains in intermediate sectors spill-over to downstream sectors such that firms using more inputs from import-intensive sectors experience higher productivity gains. The evidence indicates that the main source of spill-over is better quality, domestically produced inputs. Ignoring the gains from trade through this mechanism may significantly underestimate the impact of trade on productivity.
Appears in Collections:Economic development

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