From Firm-Level Imports to Aggregate Productivity: Evidence from Korean Manufacturing Firms Data

JaeBin Ahn and Moon Jung Choi

No 2016/162, IMF Working Papers from International Monetary Fund

Abstract: Using the Korean manufacturing firm-level data, this paper confirms that three stylized facts on importing hold in Korea: the ratio of imported inputs in total inputs tends to be procyclical; the use of imported inputs increases productivity; and larger firms are more likely to use imported inputs. As a result, we find that firm-level import decisions explain a non-trivial fraction of aggregate productivity fluctuations in Korea over the period between 2006 and 2012. Main findings of this paper suggest a possible link between the recent global productivity slowdown and the global trade slowdown.

Keywords: WP; production function; Firm-level imports; Productivity pro-cyclicality; Aggregate TFP growth; import ratio; efficiency improvement; output share; firm efficiency; import decision; input choice; TFP decrease; productivity estimate; Total factor productivity; Imports; Productivity; Global (search for similar items in EconPapers)
Pages: 32
Date: 2016-08-05
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: From firm-level imports to aggregate productivity: Evidence from Korean manufacturing firm data (2020)
Working Paper: From Firm-level Imports to Aggregate Productivity: Evidence from Korean Manufacturing Firms Data (2016)
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