Productivity effects of internationalisation through the domestic supply chain


This paper investigates productivity effects for a given firm resulting from the import or export of intermediate inputs by domestic upstream and downstream industries. With the use of manufacturing firms in 19 EU countries over the period 2000–2014, we find that domestic access to intermediate inputs that are also exported leads to higher levels of revenue productivity. The effect appears as more prominent for firms with nonforeign ownership and in relatively downstream, low-tech or labour-intensive industries. Subsequent exploration of mechanisms uncovers patterns consistent with learning by exporting on the part of upstream supplying industries that generates positive productivity spillovers to downstream firms.

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Divisions: College of Business and Social Sciences > Aston Business School > Economics, Finance & Entrepreneurship
College of Business and Social Sciences
Funding Information: We thank participants at the U4-Workshop Oct. 2014, SMYE May 2015, Ecores Summer School May 2015, ETSG Sept. 2015, ITSG Dec. 2015, Ghent University Internal Seminar Oct. 2015, 8th FIW Dec. 2015, FREIT Jun. 2016, CIE Jun. 2016 and GTD Jun. 2016 for their c
Additional Information: This is the peer reviewed version of the following article: Merlevede, B., & Theodorakopoulos, A. (2021). Productivity Effects of Internationalisation through the Domestic Supply Chain. Journal of Applied Econometrics, 36( 6), 808–832, which has been published in final form at This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited.
Uncontrolled Keywords: Social Sciences (miscellaneous),Economics and Econometrics
Publication ISSN: 1099-1255
Last Modified: 17 Jun 2024 08:08
Date Deposited: 19 Jun 2023 08:43
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Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
https://onlinel ... 0.1002/jae.2837 (Publisher URL)
PURE Output Type: Article
Published Date: 2021-08-23
Accepted Date: 2021-05-05
Authors: Merlevede, Bruno
Theodorakopoulos, Angelos (ORCID Profile 0000-0003-4151-4887)



Version: Accepted Version

License: ["licenses_description_other" not defined]

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