Importing and Firm Productivity in Ethiopian Manufacturing
This paper investigates the causal relationship between importing and firm productivity. Using a rich dataset from Ethiopian manufacturing over the period 1996–2011, I find that most firms rely on production inputs from the world market. These firms are better performing as shown by significant, eco...
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Published by Oxford University Press on behalf of the World Bank
2021
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| Online Access: | http://hdl.handle.net/10986/35433 |
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okr-10986-354332021-12-23T14:02:29Z Importing and Firm Productivity in Ethiopian Manufacturing Abreha, Kaleb Girma IMPORTS IMPORTED INPUTS ABSORPTIVE CAPACITY LEARNING-BY-IMPORTING SELF-SELECTION FIRM PRODUCTIVITY MANUFACTURING This paper investigates the causal relationship between importing and firm productivity. Using a rich dataset from Ethiopian manufacturing over the period 1996–2011, I find that most firms rely on production inputs from the world market. These firms are better performing as shown by significant, economically large import premia. I also find strong evidence of self-selection of more productive firms into importing which is indicative of sizable import market entry costs. To examine the causal effect of importing on firm productivity, I use a model in which the static and dynamic effects of importing are separately estimated. The estimation results provide support to learning-by-importing. However, the productivity gains are small in size compared to similar findings in other studies. I provide some evidence in support of firms’ limited absorptive capacity in explaining the small productivity gains. 2021-04-13T15:53:04Z 2021-04-13T15:53:04Z 2019-10 Journal Article World Bank Economic Review 1564-698X http://hdl.handle.net/10986/35433 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Published by Oxford University Press on behalf of the World Bank Publications & Research :: Journal Article Publications & Research Africa Africa Eastern and Southern (AFE) Ethiopia |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| topic |
IMPORTS IMPORTED INPUTS ABSORPTIVE CAPACITY LEARNING-BY-IMPORTING SELF-SELECTION FIRM PRODUCTIVITY MANUFACTURING |
| spellingShingle |
IMPORTS IMPORTED INPUTS ABSORPTIVE CAPACITY LEARNING-BY-IMPORTING SELF-SELECTION FIRM PRODUCTIVITY MANUFACTURING Abreha, Kaleb Girma Importing and Firm Productivity in Ethiopian Manufacturing |
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Africa Africa Eastern and Southern (AFE) Ethiopia |
| description |
This paper investigates the causal relationship between importing and firm productivity. Using a rich dataset from Ethiopian manufacturing over the period 1996–2011, I find that most firms rely on production inputs from the world market. These firms are better performing as shown by significant, economically large import premia. I also find strong evidence of self-selection of more productive firms into importing which is indicative of sizable import market entry costs. To examine the causal effect of importing on firm productivity, I use a model in which the static and dynamic effects of importing are separately estimated. The estimation results provide support to learning-by-importing. However, the productivity gains are small in size compared to similar findings in other studies. I provide some evidence in support of firms’ limited absorptive capacity in explaining the small productivity gains. |
| format |
Journal Article |
| author |
Abreha, Kaleb Girma |
| author_facet |
Abreha, Kaleb Girma |
| author_sort |
Abreha, Kaleb Girma |
| title |
Importing and Firm Productivity in Ethiopian Manufacturing |
| title_short |
Importing and Firm Productivity in Ethiopian Manufacturing |
| title_full |
Importing and Firm Productivity in Ethiopian Manufacturing |
| title_fullStr |
Importing and Firm Productivity in Ethiopian Manufacturing |
| title_full_unstemmed |
Importing and Firm Productivity in Ethiopian Manufacturing |
| title_sort |
importing and firm productivity in ethiopian manufacturing |
| publisher |
Published by Oxford University Press on behalf of the World Bank |
| publishDate |
2021 |
| url |
http://hdl.handle.net/10986/35433 |
| _version_ |
1764483024572907520 |