Imports, Heterogeneous Products and Firm Productivity
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| Title | Imports, Heterogeneous Products and Firm Productivity
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| Author | Miaojie Yu and Jin Li |
| Organization | National School of Development |
| Email | mjyu@ccer.edu.cn,lijin87@163.com |
| Key Words | Intermediate Product Import; Final Product Import; Homogenous Commodity; Heterogeneous Commodity; Firm Productivity |
| Abstract | Our paper uses industry dataset of firm level during the period from 2000 to 2006 and Customs’ tariff data. Following Rauch(1999) on heterogeneous products, this paper focuses on the effect of final product import and intermediate product import on the productivity of firms. First the relationship between the import and firm productivity is tested, and results show that the final product import and intermediate product import improve the firm productivity. Considering the endogenous problem, the results still remain robust by choosing industry level tariff and firm input tariff index as the instrument. What is more, taking heterogeneous industries into account, results present that product import gives higher improvement to the firm productivity in the homogenous industries than in heterogeneous industries. Also, intermediate input import gives more rises to the level of firm productivity, especially for the firms produce homogeneous commodities. |
| Serial Number | WP406 |
| Time | 2013-02-21 |
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