Project Management

Irish Firms' Productivity And Imported Inputs

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Executive Summary

In this paper, the authors empirically analyze the evolution of firms' productivity and how the efficiency changes with variations in the inputs' origin. Using firm-level information on a sample of Irish firms, they assess the importance of the imported inputs' quota for a firm's efficiency, as well as starting import activity. The main findings are that an increase in the intensive margin of imports raises firms' efficiency of domestic firms; in addition heterogeneous effects across firms are detected. Unlike the findings of most of the literature, there is weak evidence of self-selection in import activity; differently from previous research when they introduce fixed effects, the self-selection disappears.

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