Research On The Impact Of Imported Intermediates On Chinese Firm's Productivity

We use the matched data of the Chinese Industrial enterprises database and the Customs database to illustrate Chinese import of intermediates as well as Chinese firm's productivity,and then compare the difference in scale,trade pattern and productivity between the firms with import of intermediates and the firms without import of intermediates.Finally,we conduct an empirical analysis to study the impact of import of intermediates on Chinese firm's productivity.Compared with the firms without import of intermediates,the firms with import of intermediates have large advantage in scale and productivity.Besides,the firms with import of intermediates are more likely to be engaged in processing trade and export than the firms without import of intermediates.Empirical results find that import of intermediates has positive impact on Chinese firm's productivity and the coefficients of capital intensity,scale and profit are all positive.However,the coefficient of firm's ownership is negative.In terms of the difference in area,we find that import of intermediates has significant positive impact on east firm's productivity but insignificant negative impact on west firm's productivity.The positive impact of import of intermediates on firm's productivity is affected by the capital intensity and technical level.If the firm's capital intensity and technical level can't match the import of intermediates,technology spillover effect of import of intermediates will be limited.In terms of the difference in industry,we find that import of intermediates has significant positive impact on the productivity of firms with strong capital intensity but insignificant positive impact on the productivity of firms with weak capital intensity.Based on the conclusion,in order to improve Chinese firm's productivity and promote technological innovation and progress,it is recommended to take these measures:Firstly,expand import of high quality and technology intermediates and encourage firms to learn by import.Secondly,strengthen independent innovation to avoid blindly imitating.Thirdly,boost the capital accumulation and technical progress of middle and west area to better exert technology spillover effect of import of intermediates.Fourthly,encourage firms to expand scale and take advantage of scale efficiency to lower R&D cost and improve total factor productivity.