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From firm-level imports to aggregate productivity

: Evidence from Korean manufacturing firms data
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Title From firm-level imports to aggregate productivity
Subtitle Evidence from Korean manufacturing firms data
Author Ahn, JaeBin; Choi, Moon Jung
Publisher Seoul : Bank of Korea
Publication Date 2016
Material Type Report
Country South Korea Holding Bank of Korea
Language English License
Series Title BOK Working Paper

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.

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