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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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Submitted on : Wednesday, March 29, 2017 - 5:32:46 PM
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  • HAL Id : hal-01498268, version 1

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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. ⟨hal-01498268⟩

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