Imports, Productivity Growth, and Supply Chain Learning
160510 Public Policy
FOS: Political science
05 social sciences
1. No poverty
Supply chain
Southeast Asia
99999 Engineering not elsewhere classified
Imports
FOS: Other engineering and technologies
Indonesia
0502 economics and business
8. Economic growth
Productivity
Technology transfer
DOI:
10.1016/j.worlddev.2006.10.009
Publication Date:
2007-05-11T11:47:15Z
AUTHORS (2)
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.
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