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

August 5, 2016

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Format: Chicago

JaeBin Ahn, and Moon Jung Choi. From Firm-Level Imports to Aggregate Productivity: Evidence from Korean Manufacturing Firms Data, (USA: International Monetary Fund, 2016) accessed September 27, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Imports, International trade, Labor, Production, Productivity, Total factor productivity

Keywords: Aggregate TFP growth, Efficiency improvement, Firm efficiency, Firm-level imports, Global, Import decision, Import ratio, Imports, Input choice, Output share, Production function, Productivity, Productivity estimate, Productivity pro-cyclicality, TFP decrease, Total factor productivity, WP

Publication Details

Pages:

32
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2016/162
Stock No:

WPIEA2016162
ISBN:

9781475523584
ISSN:

1018-5941

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