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

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  • Mr. JaeBin Ahn
  • Moon Jung Choi
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 procyclical; 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.

Suggested Citation

  • Mr. JaeBin Ahn & Moon Jung Choi, 2016. "From Firm-Level Imports to Aggregate Productivity: Evidence from Korean Manufacturing Firms Data," IMF Working Papers 2016/162, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2016/162
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    Cited by:

    1. Lee, Dongyeol, 2021. "Propagation of economic shocks through vertical and trade linkages in Korea: An empirical analysis," Japan and the World Economy, Elsevier, vol. 60(C).
    2. Hahn, Chin Hee & Choi, Yong-Seok, 2021. "Learning-to-export Effect as a Response to Export Opportunities: Micro-evidence from Korean Manufacturing," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 43(4), pages 1-21.
    3. Nyeong Seon Son & Jung Hur, 2022. "An empirical study of firm productivity growth based on the dynamic selection model: Effects on the recent decline in Korean exports," Contemporary Economic Policy, Western Economic Association International, vol. 40(1), pages 190-203, January.
    4. Choi Hyelin & Jung Chun & Kim Subin, 2018. "The Effect of Restructuring on Labor Reallocation and Productivity Growth: An Estimation for Korea," Working Papers id:12429, eSocialSciences.

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    More about this item

    Keywords

    WP; production function; Firm-level imports; Productivity pro-cyclicality; Aggregate TFP growth; import ratio; efficiency improvement; output share; firm efficiency; import decision; input choice; TFP decrease; productivity estimate; Total factor productivity; Imports; Productivity; Global;
    All these keywords.

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • F1 - International Economics - - Trade
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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