Template-type: ReDIF-Paper 1.0
Author-Name: Torres Mazzi, Caio
Author-Email: mazzi@merit.unu.edu
Author-Workplace-Name: UNU-MERIT
Author-Name: Foster-McGregor, Neil
Author-Email: foster@merit.unu.edu
Author-Workplace-Name: UNU-MERIT
Title: Imported intermediates, technological capabilities and exports: Evidence from 
	 Brazilian firm-level data
Abstract: This paper explores how 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. We further find that the complementarities between 
	 importing and exporting are stronger for firms that export 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. This relationship is not found to 
	 be significant for firms that export products with a low scope for 
	 quality differentiation and that export to lower income non-OECD 
	 markets. Overall, our results suggest that technological capabilities 
	 and the quality of imported inputs not only benefit firms directly but 
	 also complement each other in enhancing export competitiveness.
Classification-JEL: F14, O31, O33, O47
Keywords: imports, exports, productivity, innovation, technological capabilities,
	 Brazil 
Series: UNU-MERIT Working Papers
Creation-Date: 20190828
Number: 2019-028
File-URL: https://unu-merit.nl/publications/wppdf/2019/wp2019-028.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2019028