Dhyne, Emmanuel; Petrin, Amil; Smeets, Valerie; … - 2024
We study how increased import competition affects the evolution of productivity in a small open economy. We use a … productivity. We find that a 1% increase in the import share leads to a 1.05% gain in productivity. This elasticity translates into … also find that firms respond to competition by focusing more on their core products. Instrumenting import share with changes …