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

C. Torres Mazzi; N. Foster-McGregor

doi:10.1016/j.respol.2020.104141

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

C. Torres Mazzi^*, N. Foster-McGregor

^*Corresponding author for this work

Research output: Contribution to journal › Article › Academic › peer-review

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 language	English
Article number	104141
Number of pages	18
Journal	Research Policy
Volume	50
Issue number	1
DOIs	https://doi.org/10.1016/j.respol.2020.104141
Publication status	Published - 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

Access to Document

10.1016/j.respol.2020.104141

Cite this

@article{b4746331deb0433eabce58556b575a8c,

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

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. ",

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",

author = "{Torres Mazzi}, C. and N. Foster-McGregor",

note = "Correspondence Address: Torres Mazzi, C.; UNU-MERIT, Boschstraat 24, Netherlands; email: torres@merit.unu.edu",

year = "2021",

month = jan,

doi = "10.1016/j.respol.2020.104141",

language = "English",

volume = "50",

journal = "Research Policy",

issn = "0048-7333",

publisher = "Elsevier",

number = "1",

}

TY - JOUR

T1 - Imported intermediates, technological capabilities and exports: Evidence from Brazilian firm-level data

AU - Torres Mazzi, C.

AU - Foster-McGregor, N.

N1 - Correspondence Address: Torres Mazzi, C.; UNU-MERIT, Boschstraat 24, Netherlands; email: torres@merit.unu.edu

PY - 2021/1

Y1 - 2021/1

N2 - 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.

AB - 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.

KW - Competition

KW - Engineering

KW - Export performance

KW - Export products

KW - Export revenues

KW - Exports

KW - High quality

KW - Imported intermediates

KW - Innovation

KW - International competitiveness

KW - Productivity

KW - Quality differentiation

KW - Technological capabilities

KW - Technological capability

KW - Threshold regressions

KW - QUALITY

KW - PRICES

KW - RESEARCH-AND-DEVELOPMENT

KW - PERFORMANCE

KW - INNOVATION

KW - HETEROGENEITY

KW - PRODUCTIVITY

KW - INPUT-TRADE LIBERALIZATION

U2 - 10.1016/j.respol.2020.104141

DO - 10.1016/j.respol.2020.104141

M3 - Article

SN - 0048-7333

VL - 50

JO - Research Policy

JF - Research Policy

IS - 1

M1 - 104141

ER -