Scandinavian Working Papers in Economics

Ratio Working Papers,
The Ratio Institute

No 225: Effects of Productivity and Import on Firm-Level Export

Viroj Jienwatcharamongkhol ()
Additional contact information
Viroj Jienwatcharamongkhol: The Ratio Institute & Lund University, Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden , &, Department of Economics, Lund University, P.O. Box 7082, SE-220 07 Lund, Sweden

Abstract: There are several studies that find a positive effect of productivity on firm-level export, but little is known about the role of import. This paper fills this gap by looking at the interaction between import and productivity in influencing exports. The main hypothesis is that imports stimulate learning, which in turn means that the productivity effect on export is greater for firms with previous import experience. To test this, I examine whether productivity increases the probability to engage in exports and for existing exporters total value of exports when firms have imported from a period before. Using data of Swedish manufacturing firms from 1997-2006,I find that imports enhance productivity in promoting firm’s exports.

Keywords: productivity; import; export; firm-level

JEL-codes: F12; F14; F41

29 pages, December 4, 2013

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