This paper examines whether importing intermediate goods improves plant performance. While addressing the issue of simultaneity of a productivity shock and decisions to import intermediates, we estimate the impact of the use of foreign intermediates on plants' productivity using plant-level...

The financial crisis in 1997 caused serious deterioration of the Korean economy. We examined the credit crunch in Korea and how it affected household welfare. With household panel data from 1996-1998, we estimated a switching regression model of a consumption Euler equation, which is augmented...