{"id":1440,"date":"2023-02-13T16:19:17","date_gmt":"2023-02-13T16:19:17","guid":{"rendered":"https:\/\/www.fiw.ac.at\/publications\/firm-efficiency-and-input-market-integration-trade-versus-fdi\/"},"modified":"2023-02-13T16:19:17","modified_gmt":"2023-02-13T16:19:17","slug":"firm-efficiency-and-input-market-integration-trade-versus-fdi","status":"publish","type":"publication","link":"https:\/\/www.fiw.ac.at\/en\/publications\/firm-efficiency-and-input-market-integration-trade-versus-fdi\/","title":{"rendered":"Firm efficiency and Input market integration Trade versus FDI"},"content":{"rendered":"\nThis paper highlights the crucial role played by international access to intermediate inputs to explain firm-level performance, via two channels simultaneously: trade and FDI. We develop a simple theoretical model showing that trade integration of input market entails an efficiency improvement within firms able to import (gains from input switching) and an efficiency decline within other firms (losses from domestic input availability). At the same time, FDI integration of input market implies non-importers\u2019 efficiency enhancement (gains from input switching) and some ambiguous effects on importers\u2019 efficiency (due to additional losses from foreign input availability). Using firm-level data from the Chinese manufacturing sector over the period 2002-2006, we find some results coherent with our theoretical predictions.\n\n","protected":false},"featured_media":0,"menu_order":0,"template":"","jelcode":[173,61,34],"keyword":[95,587,588,37,211],"class_list":["post-1440","publication","type-publication","status-publish","hentry","jelcode-f12","jelcode-f14","jelcode-f23","keyword-fdi","keyword-heterogeneous-firms","keyword-intermediate-inputs","keyword-productivity","keyword-trade-liberalization"],"acf":{"year":2015,"month":3,"day":"","volume":"","number":"154","pages":35,"reviewed":"0","citeid":"FIW_WP_154","fiwseries":"FIW Working Papers","event":null},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Firm efficiency and Input market integration Trade versus FDI - FIW<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.fiw.ac.at\/en\/publications\/firm-efficiency-and-input-market-integration-trade-versus-fdi\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Firm efficiency and Input market integration Trade versus FDI - FIW\" \/>\n<meta property=\"og:description\" content=\"This paper highlights the crucial role played by international access to intermediate inputs to explain firm-level performance, via two channels simultaneously: trade and FDI. 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