Article ID Journal Published Year Pages File Type
991232 World Development 2007 18 Pages PDF
Abstract

SummaryWe present evidence that importing is a source of international technology transfer. Using a detailed panel of Indonesian manufacturers, our analysis shows that firms in industries supplying increasingly import-intensive sectors have higher productivity growth than other firms. This finding suggests that linkages through vertical supply relationships are the channel through which import-driven technology transfer occurs. To our knowledge, these are the first firm-level results showing that downstream imports play a role in productivity gains. Together with the literature linking FDI and exporting to technology spillovers, the results provide a third component to the argument that trade and openness promote economic growth.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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