Working paper No. 225. Jienwatcharamongkhol, Viroj. (2013) Effects of Productivity and Import on Firm-Level Export.
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.