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Exporting and productivity in business services: Evidence from the United States

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  • Love, James H.
  • Mansury, Mica Ariana
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    Abstract

    Does exporting make firms more productive, or do more productive firms choose to become exporters? This paper considers the link between exporting and productivity for a sample of firms in US business services. We find that larger, more productive firms are more likely to become exporters, but that these factors do not necessarily influence the extent of exporting. This conforms with previous literature that there is a self-selection effect into exporting. We then test for the effect of exporting on productivity levels after allowing for this selection effect. We model both the relationship between exporting and productivity, and a simultaneous relationship between export intensity and productivity after allowing for selection bias. In both cases we find an association, indicating that productivity is positively linked both to exporting and to increased exposure to international markets.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Business Review.

    Volume (Year): 18 (2009)
    Issue (Month): 6 (December)
    Pages: 630-642

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    Handle: RePEc:eee:iburev:v:18:y:2009:i:6:p:630-642

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    Keywords: Business services Exporting Productivity Self-selection Services United States;

    References

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    Cited by:
    1. Chung, Henry F.L. & Rose, Ellen & Huang, Pei-how, 2012. "Linking international adaptation strategy, immigrant effect, and performance: The case of home–host and cross-market scenario," International Business Review, Elsevier, vol. 21(1), pages 40-58.
    2. Tanja GrubljeÅ¡iÄ & Jože Damijan, 2011. "From Differences in Export Behavior of Services and Manufacturing Firms in Slovenia," LICOS Discussion Papers 29511, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    3. Asier Minondo, . "Exporters of services in Spain," Working Papers 2011R04, Basque Institute of Competitiveness.
    4. Love, James H. & Ganotakis, Panagiotis, 2013. "Learning by exporting: Lessons from high-technology SMEs," International Business Review, Elsevier, vol. 22(1), pages 1-17.
    5. García, Francisco & Avella, Lucía & Fernández, Esteban, 2012. "Learning from exporting: The moderating effect of technological capabilities," International Business Review, Elsevier, vol. 21(6), pages 1099-1111.
    6. Richard Harris & John Moffat, 2011. "R&D, Innovation and Exporting," SERC Discussion Papers 0073, Spatial Economics Research Centre, LSE.
    7. Pangarkar, Nitin & Wu, Jie, 2012. "Industry globalization and the performance of emerging market firms: Evidence from China," International Business Review, Elsevier, vol. 21(2), pages 196-209.
    8. Anwar, Sajid & Nguyen, Lan Phi, 2011. "Foreign direct investment and export spillovers: Evidence from Vietnam," International Business Review, Elsevier, vol. 20(2), pages 177-193, April.
    9. Yang, Yong & Mallick, Sushanta, 2014. "Explaining cross-country differences in exporting performance: The role of country-level macroeconomic environment," International Business Review, Elsevier, vol. 23(1), pages 246-259.

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