Imported intermediates, technological capabilities and exports: Evidence from Brazilian firm-level data

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Abstract

This paper explores how internal technological capabilities influence the relationship between imported inputs and the export performance of firms. We apply threshold regression techniques to a representative dataset of Brazilian firms and find a strong positive influence of innovation skills on the relationship between imported intermediates and export revenues. Complementarities between capabilities and importing are found only for high-quality imports and are stronger for exports of products with a higher scope for quality differentiation. We also observe that technological capabilities are directly correlated with export performance, confirming the view that innovation positively influences firms' international competitiveness.
Original languageEnglish
Article number104141
Number of pages18
JournalResearch Policy
Volume50
Issue number1
DOIs
Publication statusPublished - Jan 2021

JEL classifications

  • o33 - "Technological Change: Choices and Consequences; Diffusion Processes"
  • o40 - Economic Growth and Aggregate Productivity: General
  • o32 - Management of Technological Innovation and R&D
  • f14 - Empirical Studies of Trade

Keywords

  • Competition
  • Engineering
  • Export performance
  • Export products
  • Export revenues
  • Exports
  • High quality
  • Imported intermediates
  • Innovation
  • International competitiveness
  • Productivity
  • Quality differentiation
  • Technological capabilities
  • Technological capability
  • Threshold regressions
  • QUALITY
  • PRICES
  • RESEARCH-AND-DEVELOPMENT
  • PERFORMANCE
  • INNOVATION
  • HETEROGENEITY
  • PRODUCTIVITY
  • INPUT-TRADE LIBERALIZATION

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