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Are low-productive exporters marginal exporters? Evidence from Germany

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  • Joachim Wagner

    ()
    (Leuphana University Lueneburg)

Abstract

A stylized fact from the emerging literature on the micro-econometrics of international trade and a central implication of the heterogeneous firm models from the new new trade theory is that exporters are more productive than non-exporters. It is argued that this exporter-productivity premium is due to extra cost of exporting that can be covered profitably by more productive firms only. Germany is a case in point - exporting firms from manufacturing industries are more productive than non-exporting firms from the same 4-digit industry both on average and over the whole productivity distribution. However, many firms from the lower end of this distribution are exporters. This paper report that these low-productivity exporters are not marginal exporters defined according to the share of exports in total sales, or export participation over time, or the number of goods exported, or the number of countries exported to.

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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 33 (2013)
Issue (Month): 1 ()
Pages: 467-481

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Handle: RePEc:ebl:ecbull:eb-13-00084

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Keywords: Exports; productivity; low-productive exporters; Germany;

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References

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  1. Elhanan Helpman, 2006. "Trade, FDI, and the Organization of Firms," Harvard Institute of Economic Research Working Papers, Harvard - Institute of Economic Research 2118, Harvard - Institute of Economic Research.
  2. Redding, Stephen J., 2010. "Theories of Heterogeneous Firms and Trade," CEPR Discussion Papers, C.E.P.R. Discussion Papers 7961, C.E.P.R. Discussion Papers.
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  7. Helpman, Elhanan, 2011. "Understanding Global Trade," Economics Books, Harvard University Press, Harvard University Press, number 9780674060784.
  8. Andrew Bernard & Joachim Wagner, 1997. "Exports and success in German manufacturing," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 133(1), pages 134-157, March.
  9. Eric J. Bartelsman & Mark Doms, 2000. "Understanding productivity: lessons from longitudinal microdata," Finance and Economics Discussion Series, Board of Governors of the Federal Reserve System (U.S.) 2000-19, Board of Governors of the Federal Reserve System (U.S.).
  10. Joachim Wagner, 2008. "A note on why more West than East German firms export," International Economics and Economic Policy, Springer, Springer, vol. 5(4), pages 363-370, December.
  11. Foster, Lucia & Haltiwanger, John C. & Syverson, Chad, 2005. "Reallocation, Firm Turnover, and Efficiency: Selection on Productivity or Profitability?," IZA Discussion Papers 1705, Institute for the Study of Labor (IZA).
  12. Chad Syverson, 2011. "What Determines Productivity?," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 49(2), pages 326-65, June.
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Cited by:
  1. Joachim Wagner, 2014. "Low-productive exporters are high-quality exporters. Evidence from Germany," Economics Bulletin, AccessEcon, vol. 34(2), pages 745-756.

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