Import, export and multinationality: evidence from Swedish firms

Import, export and multinationality: evidence from Swedish firms
Document type
Discussion paper
Author(s)
Castellani, Davide; Fassio, Claudio
Publisher
Henley School of Management
Date of publication
1 November 2016
Series
Discussion Paper; JHD-2016-08
Subject(s)
Trends: economic, social and technology trends affecting business
Collection
Business and management
Material type
Reports

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This paper studies the role of imported inputs in explaining firms’ export behaviour.

Unlike most of the existing literature the paper is also able to control for the participation of domestic firms to multinational networks.

This allows the authors to test to what extent the recurrent evidence that importing foster exporting activity is instead a figment of the fact that importers are also part of multinational groups.

The evidence, based on Swedish manufacturing firms, suggests that imported inputs, rather than multinationality, are a key determinant of firms’ export propensity and product scope.

This result is particularly strong for SMEs, and it is driven by imported intermediates and (to a lesser extent) capital goods.

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