KTH/CESIS Working Paper Series in Economics and Institutions of Innovation
Imports, Productivity and the Origin Markets -the role of knowledge-intensive economies
() and Martin Andersson
Abstract: This paper investigates whether domestic firms’
productivity is an increasing function of imports from the most knowledge
intensive economies in the world, i.e. the G7 countries. Using Swedish
firm-level data, we confirm an instantaneous causality going from imports
to productivity. We also show that productivity is increasing in the
G7-fraction of total imports. Our results highlight the importance of
import flows from R&D and knowledge intensive economies for productivity
and are consistent with imports being a vehicle for technology diffusion.
Tests of the sensitivity of the results suggest that G7 imports are
particularly important for firms in high-technology sectors and for firms
belonging to multinationals and domestic corporations.
Keywords: Technology diffusion; productivity; imports; panel data; GMM; (follow links to similar papers)
JEL-Codes: C81; F14; L10; L60; O33; (follow links to similar papers)
29 pages, October 13, 2008
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