The Effect of Imported Intermediate Inputs on Firm Performance: Firm and Establishment Level Evidence from Japan (Japanese)
Under the recent rapid development of production fragmentation across countries, there is a growing number of studies that examines the effect of international outsourcing and offshoring decisions on the domestic operations of firms. According to the Global Value Chain Index (GVCI) developed by OECD...
Saved in:
Published in | IDEAS Working Paper Series from RePEc |
---|---|
Main Authors | , |
Format | Paper |
Language | English |
Published |
St. Louis
Federal Reserve Bank of St. Louis
01.01.2019
|
Subjects | |
Online Access | Get full text |
Cover
Loading…
Abstract | Under the recent rapid development of production fragmentation across countries, there is a growing number of studies that examines the effect of international outsourcing and offshoring decisions on the domestic operations of firms. According to the Global Value Chain Index (GVCI) developed by OECD, the participation rate of Japanese firms in global value chains increased from 29.3 % in 1995 to 47.7% in 2007. RIETI-TID database shows that Japanese parts and product imports from China increased from 5.8 billion US dollars in 2000 to 25.0 billion US dollars in 2016. This paper examines the effect of increases in imported intermediate input use goods on firm outcomes, especially exports. First, we examine the effect on firm productivity, and we find a positive relationship between increases in imported intermediate input use goods and productivity level. When we separate the analysis by import source regions, a positive relationship is observed from imports from North America and Europe, but no relationship is found in the case of imports from China. These results indicate that firms benefit from the technology spillover effects from the advanced countries by importing from them. Our analysis also indicates that the increase in imports supports the improvement of resource allocation within firms. Next, we analyze the effect of the increase of imported inputs on both extensive margin and intensive margin of firm exports, controlling for the productivity of firms and establishments, finding a positive relationship in both cases. These results imply that imported inputs have a positive impact on firm exports both through productivity improvement and reduced intermediate input price. We also examine the effect of imported inputs on the number of employees, but we find no significant effect. |
---|---|
AbstractList | Under the recent rapid development of production fragmentation across countries, there is a growing number of studies that examines the effect of international outsourcing and offshoring decisions on the domestic operations of firms. According to the Global Value Chain Index (GVCI) developed by OECD, the participation rate of Japanese firms in global value chains increased from 29.3 % in 1995 to 47.7% in 2007. RIETI-TID database shows that Japanese parts and product imports from China increased from 5.8 billion US dollars in 2000 to 25.0 billion US dollars in 2016. This paper examines the effect of increases in imported intermediate input use goods on firm outcomes, especially exports. First, we examine the effect on firm productivity, and we find a positive relationship between increases in imported intermediate input use goods and productivity level. When we separate the analysis by import source regions, a positive relationship is observed from imports from North America and Europe, but no relationship is found in the case of imports from China. These results indicate that firms benefit from the technology spillover effects from the advanced countries by importing from them. Our analysis also indicates that the increase in imports supports the improvement of resource allocation within firms. Next, we analyze the effect of the increase of imported inputs on both extensive margin and intensive margin of firm exports, controlling for the productivity of firms and establishments, finding a positive relationship in both cases. These results imply that imported inputs have a positive impact on firm exports both through productivity improvement and reduced intermediate input price. We also examine the effect of imported inputs on the number of employees, but we find no significant effect. |
Author | KIM YoungGak INUI Tomohiko |
Author_xml | – sequence: 1 fullname: KIM YoungGak – sequence: 2 fullname: INUI Tomohiko |
BookMark | eNqNir0OgjAYRRl08O8dvsRFBxckRFwNRIyDAzup9DZg6FdsC4svL1EfwOnk3nPmwYQNYxa8ihqUKoXKk1GU685YD0k5e1gN2QiPcXS9d2SYssZqusEqY7XgCsfvI1hS6ry4t42rNdjTFQNaSodGYsxIWaPpIjrBtPkADttlMFWidVj9uAjWWVqczrvOmmcP58uH6S2PqgzDfZwcojhK9v9Vb4YtSjU |
ContentType | Paper |
Copyright | (c) 2019. Notwithstanding the ProQuest Terms and conditions, you may use this content in accordance with the associated terms available at https://research.stlouisfed.org/research_terms.html . |
Copyright_xml | – notice: (c) 2019. Notwithstanding the ProQuest Terms and conditions, you may use this content in accordance with the associated terms available at https://research.stlouisfed.org/research_terms.html . |
DBID | 3V. 7WY 7WZ 7XB 87Z 8FK 8FL AAFGM ABLUL ABPUF ABSSA ABUWG ACIOU ADZZV AFKRA AGAJT AGSBL AJNOY AQTIP AZQEC BENPR BEZIV BOUDT CBHQV CCPQU DWQXO FRNLG F~G K60 K6~ L.- M0C PIMPY PQBIZ PQBZA PQCXX PQEST PQQKQ PQUKI PRINS Q9U |
DatabaseName | ProQuest Central (Corporate) ABI/INFORM Collection ABI/INFORM Global (PDF only) ProQuest Central (purchase pre-March 2016) ABI/INFORM Collection ProQuest Central (Alumni) (purchase pre-March 2016) ABI/INFORM Collection (Alumni Edition) ProQuest Central Korea - hybrid linking Business Premium Collection - hybrid linking ABI/INFORM Collection (Alumni) - hybrid linking ABI/INFORM Collection - hybrid linking ProQuest Central (Alumni) ABI/INFORM Global - hybrid linking ProQuest Central (Alumni) - hybrid linking ProQuest Central ProQuest Central Essentials - hybrid linking ABI/INFORM Global (Alumni) - hybrid linking Business Premium Collection (Alumni) - hybrid linking ProQuest Women's & Gender Studies - hybrid linking ProQuest Central Essentials ProQuest Central Business Premium Collection ProQuest One Business - hybrid linking ProQuest One Business (Alumni) - hybrid linking ProQuest One Community College ProQuest Central Korea Business Premium Collection (Alumni) ABI/INFORM Global (Corporate) ProQuest Business Collection (Alumni Edition) ProQuest Business Collection ABI/INFORM Professional Advanced ABI/INFORM Global Publicly Available Content Database ProQuest One Business ProQuest One Business (Alumni) ProQuest Central - hybrid linking ProQuest One Academic Eastern Edition (DO NOT USE) ProQuest One Academic ProQuest One Academic UKI Edition ProQuest Central China ProQuest Central Basic |
DatabaseTitle | Publicly Available Content Database Business Premium Collection ABI/INFORM Global (Corporate) ProQuest Business Collection (Alumni Edition) ProQuest One Business ABI/INFORM Global ABI/INFORM Global (Alumni Edition) ProQuest Central Basic ProQuest Central Essentials ProQuest One Academic Eastern Edition ProQuest Central (Alumni Edition) ProQuest One Community College ProQuest Business Collection ProQuest Central China ABI/INFORM Complete ProQuest Central ABI/INFORM Professional Advanced ProQuest One Academic UKI Edition ProQuest Central Korea ProQuest One Business (Alumni) ProQuest One Academic ABI/INFORM Complete (Alumni Edition) ProQuest Central (Alumni) Business Premium Collection (Alumni) |
DatabaseTitleList | Publicly Available Content Database |
Database_xml | – sequence: 1 dbid: BENPR name: ProQuest Central url: https://www.proquest.com/central sourceTypes: Aggregation Database |
DeliveryMethod | fulltext_linktorsrc |
Genre | Working Paper/Pre-Print |
GeographicLocations | United States--US China |
GeographicLocations_xml | – name: China – name: United States--US |
GroupedDBID | 3V. 7WY 7XB 8FK 8FL ABUWG AFKRA AZQEC BENPR BEZIV CCPQU DWQXO FRNLG K60 K6~ L.- M0C PIMPY PQBIZ PQBZA PQEST PQQKQ PQUKI PRINS Q9U |
ID | FETCH-proquest_journals_22369846493 |
IEDL.DBID | BENPR |
IngestDate | Sun Aug 11 09:01:22 EDT 2024 |
IsOpenAccess | true |
IsPeerReviewed | false |
IsScholarly | false |
Language | English |
LinkModel | DirectLink |
MergedId | FETCHMERGED-proquest_journals_22369846493 |
OpenAccessLink | https://www.proquest.com/docview/2236984649/abstract/?pq-origsite=%requestingapplication% |
PQID | 2236984649 |
PQPubID | 2036240 |
ParticipantIDs | proquest_journals_2236984649 |
PublicationCentury | 2000 |
PublicationDate | 20190101 |
PublicationDateYYYYMMDD | 2019-01-01 |
PublicationDate_xml | – month: 01 year: 2019 text: 20190101 day: 01 |
PublicationDecade | 2010 |
PublicationPlace | St. Louis |
PublicationPlace_xml | – name: St. Louis |
PublicationTitle | IDEAS Working Paper Series from RePEc |
PublicationYear | 2019 |
Publisher | Federal Reserve Bank of St. Louis |
Publisher_xml | – name: Federal Reserve Bank of St. Louis |
Score | 3.179037 |
Snippet | Under the recent rapid development of production fragmentation across countries, there is a growing number of studies that examines the effect of international... |
SourceID | proquest |
SourceType | Aggregation Database |
SubjectTerms | Economic models Exports Productivity |
Title | The Effect of Imported Intermediate Inputs on Firm Performance: Firm and Establishment Level Evidence from Japan (Japanese) |
URI | https://www.proquest.com/docview/2236984649/abstract/ |
hasFullText | 1 |
inHoldings | 1 |
isFullTextHit | |
isPrint | |
link | http://utb.summon.serialssolutions.com/2.0.0/link/0/eLvHCXMwfV1LS8QwEB7W7cWbouJjlQE96KG03aal8SIoLXXRpYjC3pa2mYKHbWvbPfnnTdKWPQh7Ckkg5Dlf8s1MBuCOMiaEzxzTDWzPZIXNzYC5vsnkfuJErsRE5Zz8vvTjL7ZYeasJxKMvjDKrHGWiFtSiyhVHbkkY87kES8atNFMsQN5ZT_WPqeJHKT3rEEzjAIy5w5TC1ngOl8nHPxGrcSM6AiNJa2qOYULlCfzKNcH-u2CsCnzd6E_FBWpWTrtwdCQz9bZrsSox-m42mOwM-x_7Evn0x1De6TR9pLg9fFOGPzjGB0XlMYILCYIl3uuEWno4hdso_HyJzbGf62EXtevdmN0zmJZVSeeA3E5d8ud27pBgXFAmz1zmMK8IeG6LLLiA2b6WLvdXX8GhvBLwnmSYwbRrtnQtYbfLboYZ_QNIQI5c |
link.rule.ids | 786,790,21416,33779,43840 |
linkProvider | ProQuest |
linkToHtml | http://utb.summon.serialssolutions.com/2.0.0/link/0/eLvHCXMwfV3NS8MwFH9od9CbouLH1Ad60EOxtWlpvAhKSze3MWTCbmNtXsHD2tl2J_95X7KOHYSdQhII-Xh5v-SX9_IA7ikVSgXCtb3Q8W2RO9IOhRfYguVJEnmMido5eTgKki_Rn_rTlnCrW7PKjU40ilqVmebInxjGAslgKeTr8sfWUaP062obQmMfOsLjq4oFnbdoNP78p1gNWsRH0BnPl1Qdwx4VJ_DLK4HrT4KxzLG3MF-JKzRcnHHcaIgzy1VTY1lg_F0tcLw1539Zl_CFHyM-yRnSSDN6ONDmPriJCoraTwT7DH0FPpiEano8hbs4mrwn9qafs1Z26tl2pN4ZWEVZ0DmgdOYeBc9O5pISUlHKOy11hZ-HMnNUGl5Ad1dLl7urb-EgmQwHs0Fv9HEFh3wokGuaoQtWU63omoG3SW_a2f0DW9KNjw |
openUrl | ctx_ver=Z39.88-2004&ctx_enc=info%3Aofi%2Fenc%3AUTF-8&rfr_id=info%3Asid%2Fsummon.serialssolutions.com&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.atitle=The+Effect+of+Imported+Intermediate+Inputs+on+Firm+Performance%3A+Firm+and+Establishment+Level+Evidence+from+Japan+%28Japanese%29&rft.jtitle=IDEAS+Working+Paper+Series+from+RePEc&rft.au=KIM+YoungGak&rft.au=INUI+Tomohiko&rft.date=2019-01-01&rft.pub=Federal+Reserve+Bank+of+St.+Louis |