From Firm-Level Imports to Aggregate Productivity: Evidence from Korean Manufacturing Firms Data

37 Pages Posted: 29 Apr 2016

See all articles by JaeBin Ahn

JaeBin Ahn

International Monetary Fund (IMF)

Moon Jung Choi

The Bank of Korea; Bank of Korea - Economic Research Institute

Multiple version iconThere are 2 versions of this paper

Date Written: April 27, 2016

Abstract

Using the Korean manufacturing firm-level data, this paper confirms that three stylized facts on importing hold in Korea: the ratio of imported inputs in total inputs tends to be pro-cyclical; the use of imported inputs increases productivity; and larger firms are more likely to use imported inputs. As a result, we find that firm-level import decisions explain a non-trivial fraction of aggregate productivity fluctuations in Korea over the period between 2006 and 2012. Main findings of this paper suggest a possible link between the recent global productivity slowdown and the global trade slowdown.

Keywords: Firm-level imports, Productivity pro-cyclicality, Aggregate TFP of manufacturing sector

JEL Classification: E3, F1, F4, O4

Suggested Citation

Ahn, JaeBin and Choi, Moon Jung, From Firm-Level Imports to Aggregate Productivity: Evidence from Korean Manufacturing Firms Data (April 27, 2016). Bank of Korea WP 2016-6. Available at SSRN: https://ssrn.com/abstract=2769708 or http://dx.doi.org/10.2139/ssrn.2769708

JaeBin Ahn

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Moon Jung Choi (Contact Author)

The Bank of Korea ( email )

39, Namdaemun-ro, Jung-gu
Seoul, 04531
Korea, Republic of (South Korea)

Bank of Korea - Economic Research Institute ( email )

110, 3-Ga, Namdaemunno, Jung-Gu
Seoul 100-794
Korea, Republic of (South Korea)

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