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Does Exporting Increase Productivity? A Microeconometric Analysis of Matched Firms

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Author Info
Sourafel Girma
David Greenaway
Richard Kneller

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Abstract

Exporting involves sunk costs, so some firms export whilst others do not. This proposition derives from a number of models of firm behavior and has been exposed to microeconometric analysis. Evidence from the latter suggests that exporting firms are generally more productive than nonexporters. They self-select, in that they are more productive before they enter export markets, but the evidence suggests that entry does not make them any more productive. This paper investigates exporting and firm performance for a large panel of UK manufacturing firms, applying matching techniques. The authors find that exporters are more productive and they do self-select. In contrast to other evidence, however, exporting further increases firm productivity. Copyright Blackwell Publishing Ltd 2004..

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File URL: http://www.blackwell-synergy.com/links/doi/10.1111/j.1467-9396.2004.00486.x
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Article provided by Blackwell Publishing in its journal Review of International Economics.

Volume (Year): 12 (2004)
Issue (Month): 5 (November)
Pages: 855-866
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Handle: RePEc:bla:reviec:v:12:y:2004:i:5:p:855-866

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This page was last updated on 2009-11-22.


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