Imports, Productivity Growth, and Supply Chain Learning

46 Pages Posted: 8 Feb 2007

See all articles by Garrick Blalock

Garrick Blalock

Cornell University - School of Applied Economics and Management

Francisco M. Veloso

Carnegie Mellon University - Engineering and Public Policy (EPP); CATOLICA - LISBON School of Business and Economics

Abstract

We present evidence that importing is a source of international technology transfer. Using a detailed panel of Indonesian manufacturers, our analysis shows that firms in industries supplying increasingly import-intensive sectors have higher productivity growth than other firms. This finding suggests that linkages through vertical supply relationships are the channel through which import-driven technology transfer occurs. To our knowledge, these are the first firm-level results showing that downstream imports play a role in productivity gains. Together with the literature linking FDI and exporting to technology spillovers, the results provide a third component to the argument that trade and openness promote economic growth.

Keywords: Technology Transfer, Productivity, Imports, Supply Chain, Southeast Asia, Indonesia

JEL Classification: F2, O1, O3

Suggested Citation

Blalock, Garrick and Veloso, Francisco M. and Veloso, Francisco M., Imports, Productivity Growth, and Supply Chain Learning. World Development, Forthcoming, Available at SSRN: https://ssrn.com/abstract=961509

Garrick Blalock (Contact Author)

Cornell University - School of Applied Economics and Management ( email )

248 Warren Hall
Ithaca, NY 14853
United States

Francisco M. Veloso

Carnegie Mellon University - Engineering and Public Policy (EPP) ( email )

Pittsburgh, PA 15213
United States

HOME PAGE: http://www.andrew.cmu.edu/~fveloso/

CATOLICA - LISBON School of Business and Economics ( email )

Palma de Cima
Lisboa, 1649-023
Portugal

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