From Firm-Level Imports to Aggregate Productivity: Evidence from Korean Manufacturing Firms Data
IMF Working Papers, August 5, 2016
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- From Firm-Level Imports to Aggregate Productivity: Evidence from Korean Manufacturing Firms Data
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Bibliographic details
- Authors: JaeBin Ahn, Moon Jung Choi
- Published: August 5, 2016
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781475523584.001
Summary
- Using Korean manufacturing firm-level data, the paper confirms three stylized facts on importing in Korea.
- The analysis covers the period between 2006 and 2012.
- The paper finds that firm-level import decisions explain a non-trivial fraction of aggregate productivity fluctuations in Korea over 2006–2012.
- Main findings suggest a possible link between the recent global productivity slowdown and the global trade slowdown.
Stylized facts on importing (confirmed in Korea)
- The ratio of imported inputs in total inputs tends to be procyclical.
- The use of imported inputs increases productivity.
- Larger firms are more likely to use imported inputs.
Key findings and implications
- Firm-level import decisions contribute significantly to aggregate productivity fluctuations in Korea over the period 2006 to 2012.
- The observed relationship between imported inputs and firm productivity provides a potential channel linking the global trade slowdown to the recent global productivity slowdown.
Data, scope, and methodology (as reported)
- Data source: Korean manufacturing firm-level data.
- Analysis period: 2006–2012.
- Publication type: IMF Working Paper (research in progress; views expressed are those of the author(s) and do not necessarily represent those of the IMF or IMF policy).
Content in this bundle
- From Firm-Level Imports to Aggregate Productivity: Evidence from Korean Manufacturing Firms Data