Productivity Effects of Internationalisation through the Domestic Supply Chain: Evidence from Europe

B. Merlevede, A. Theodorakopoulos

Research output: Contribution to journalArticle

Abstract

This paper analyses whether indirect effects of internationalisation occur through the domestic supply chain. We investigate productivity effects for a given firm resulting from the import or export of intermediate inputs by domestic upstream and downstream industries. Using a rich sample of manufacturing firms in 19 EU countries, we find evidence that domestic access to intermediate inputs that are also destined to foreign countries is associated with higher levels of revenue productivity. Further, our results highlight two common, but important, misspecification biases: ignoring the dynamic nature of productivity and estimating a value-added instead of a gross-output production function.
Original languageEnglish
Number of pages46
JournalSSRN Electronic Journal
DOIs
Publication statusPublished - 19 Apr 2019

Fingerprint

Dive into the research topics of 'Productivity Effects of Internationalisation through the Domestic Supply Chain: Evidence from Europe'. Together they form a unique fingerprint.

Cite this