TY - JOUR
T1 - Productivity Effects of Internationalisation through the Domestic Supply Chain: Evidence from Europe
AU - Merlevede, B.
AU - Theodorakopoulos, A.
PY - 2019/4/19
Y1 - 2019/4/19
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?eid=2-s2.0-85111480064&partnerID=MN8TOARS
UR - https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3357514
U2 - 10.2139/ssrn.3357514
DO - 10.2139/ssrn.3357514
M3 - Article
SN - 1556-5068
JO - SSRN Electronic Journal
JF - SSRN Electronic Journal
ER -