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Imports, productivity and substitutability between intermediate inputs: a quantile regressions approach

Author

Listed:
  • Segundo Camino-Mogro

    (Universidad Complutense de Madrid; ESAI Business School; Universidad Católica Santiago de Guayaquil)

  • Paul Carrillo-Maldonado

    (Ecuadorian Political Economy Lab (EPEL); Inter-American Development Bank (IADB))

  • Alberto López

    (Department of Economic Analysis. Universidad Complutense de Madrid)

Abstract

Using firm-level data from Ecuador, we study the impact of imported intermediates on productivity and estimate the elasticity of substitution between domestic and imported intermediates. We contribute to the literature by complementing mean regression results with quantile regression results. Our results suggest that, first, there is a positive effect of imports on productivity; second, this effect is significant at all quantile levels of output, although this effect seems to have an inverted-U shape; and third, domestic and imported intermediates are substitutes.

Suggested Citation

  • Segundo Camino-Mogro & Paul Carrillo-Maldonado & Alberto López, 2021. "Imports, productivity and substitutability between intermediate inputs: a quantile regressions approach," Economics Bulletin, AccessEcon, vol. 41(2), pages 702-709.
    • Handle: RePEc:ebl:ecbull:eb-20-01243
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    References listed on IDEAS

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    1. Joachim Wagner, 2006. "Export Intensity and Plant Characteristics: What Can We Learn from Quantile Regression?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 142(1), pages 195-203, April.
    2. Joachim Wagner, 2016. "From Estimation Results to Stylized Facts: Twelve Recommendations for Empirical Research in International Activities of Heterogeneous Firms," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 15, pages 479-514, World Scientific Publishing Co. Pte. Ltd..
    3. Kasahara, Hiroyuki & Rodrigue, Joel, 2008. "Does the use of imported intermediates increase productivity? Plant-level evidence," Journal of Development Economics, Elsevier, vol. 87(1), pages 106-118, August.
    4. Yasar, Mahmut & Morrison Paul, Catherine J., 2007. "International linkages and productivity at the plant level: Foreign direct investment, exports, imports and licensing," Journal of International Economics, Elsevier, vol. 71(2), pages 373-388, April.
    5. David Powell & Joachim Wagner, 2021. "The Exporter Productivity Premium Along the Productivity Distribution: Evidence from Quantile Regression with Nonadditive Firm Fixed Effects," World Scientific Book Chapters, in: Joachim Wagner (ed.), MICROECONOMETRIC STUDIES OF FIRMS’ IMPORTS AND EXPORTS Advanced Methods of Analysis and Evidence from German Enterprises, chapter 9, pages 121-149, World Scientific Publishing Co. Pte. Ltd..
    6. Mahmut Yasar & Carl H. Nelson & Roderick Rejesus, 2006. "Productivity and Exporting Status of Manufacturing Firms: Evidence from Quantile Regressions," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 142(4), pages 675-694, December.
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    Cited by:

    1. Segundo Camino‐Mogro & Paul Carrillo‐Maldonado, 2023. "Do imports of intermediate inputs generate higher productivity? Evidence from Ecuadorian manufacturing firms," The World Economy, Wiley Blackwell, vol. 46(5), pages 1471-1521, May.

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    More about this item

    Keywords

    Imports; Productivity; Inputs substitutability;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • D2 - Microeconomics - - Production and Organizations

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