|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|
|Country||South Korea||Holding||Bank of Korea|
|Series Title||BOK Working Paper|
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.