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Evaluating the Contribution of Exporting to UK Productivity Growth: Some Microeconomic Evidence

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  • Richard Harris
  • Qian Cher Li

Abstract

This study assesses the contribution of exporting activities to aggregate productivity growth in the UK for all market-based sectors for the period 1996-2004, using a weighted FAME dataset. Based on decompositions of productivity growth, our findings suggest that, overall, exporting firms experience faster productivity growth than non-exporting firms and therefore contribute more to national productivity growth. In addition, aggregate productivity for exporters benefits from a large contribution from 'continuing' firms improving their productivity, as well as exporters that have been taken-over/merged or started-up as new firms. In contrast, most of the TFP improvement for non-exporters is attributable to lower productivity firms exiting, rather than from internal improvements or the productivity-enhancing impact of new firms. Copyright 2008 The Authors.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal World Economy.

Volume (Year): 31 (2008)
Issue (Month): 2 (02)
Pages: 212-235

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Handle: RePEc:bla:worlde:v:31:y:2008:i:2:p:212-235

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Cited by:
  1. Kazuhiko Yokota & Akinori Tomohara, 2009. "Extending the Learning-By-Exporting Hypothesis: Introducing a Credit Constraint," International Advances in Economic Research, Springer, vol. 15(2), pages 169-177, May.
  2. Carlos Carreira, 2013. "Learning, Exporting and Firm Productivity: Evidence from Portuguese Manufacturing and Services Firms," GEMF Working Papers 2013-23, GEMF - Faculdade de Economia, Universidade de Coimbra.
  3. Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2012. "The Impact of Trade Integration with the EU on Porductivity in a Post-Transition Economy. The Case of Polish Manufacturing Sectors," Working Papers 1202, Instytut Rozwoju, Institute for Development.
  4. Markus Eberhardt & Christian Helmers, 2010. "Untested Assumptions and Data Slicing: A Critical Review of Firm-Level Production Function Estimators," Economics Series Working Papers 513, University of Oxford, Department of Economics.

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