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Journal Articles Canadian Journal of Economics Year : 2013

Imports and TFP at the firm level: the role of absorptive capacity

Abstract

This paper estimates the effect of the decision to import intermediate goods and capital equipment on Total Factor Productivity (TFP) at the firm level on a panel of Spanish firms (19912002). We use two alternative approaches. In the first, we estimate TFP and apply a diffindiff estimator with a control group constructed by propensityscore matching. In the second, direct method, we estimate TFP with imported inputs as a state variable in one stage. Both approaches show that the effect of a firm's decision to source intermediates and capital equipment abroad on its TFP depends critically on its capacity to absorb technology, measured by the proportion of skilled labour.

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Dates and versions

hal-01498268 , version 1 (29-03-2017)

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Patricia Augier, Olivier Cadot, Marion Dovis. Imports and TFP at the firm level: the role of absorptive capacity. Canadian Journal of Economics, 2013, 46 (3), pp.956-981. ⟨10.1111/caje.12034⟩. ⟨hal-01498268⟩
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