Imported Intermediate Inputs, Firm Productivity and Product Complexity

15 Pages Posted: 6 May 2014

See all articles by Miaojie Yu

Miaojie Yu

Peking University - China Center for Economic Research (CCER)

Li Jin

Peking University - Department of Finance

Date Written: June 2014

Abstract

This paper takes product complexity into account to study the impact of imported intermediate inputs on firms. Highly disaggregated Chinese transaction‐level trade data and firm‐level production data from 2002 to 2006 are used to construct firm‐level imported intermediate inputs. After controlling for the endogeneity of imported intermediate inputs and taking industrial imports of final goods into account, the analysis finds that firm productivity increases with increased imported intermediate inputs. The impact of imported intermediate inputs on firm productivity is weaker as firms produce more complex products.

JEL Classification: F10, F13

Suggested Citation

Yu, Miaojie and Jin, Li, Imported Intermediate Inputs, Firm Productivity and Product Complexity (June 2014). Japanese Economic Review, Vol. 65, Issue 2, pp. 178-192, 2014. Available at SSRN: https://ssrn.com/abstract=2433319 or http://dx.doi.org/10.1111/jere.12041

Miaojie Yu (Contact Author)

Peking University - China Center for Economic Research (CCER) ( email )

Beijing, Beijing 100871
China
+86-10-6275-3109 (Phone)

HOME PAGE: http://mjyu.ccer.edu.cn

Li Jin

Peking University - Department of Finance ( email )

Beijing
China

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