This paper investigates various aspects of the links between exporting and productivity for a large sample of firms in the United Kingdom. We find evidence to support the proposition that sunk costs are important. Self selection takes place, with larger and more productive firms entering export markets, and firms have to become more productive in order to enter. Industry characteristics also affect the likelihood of entry--both industrial and spatial agglomeration are important. When we rely on an unmatched sample of firms we can find some evidence of further productivity improvement after entry, but this disappears when we use a matched sample. Our results suggest that policy should avoid simply subsidizing firms that may self select into export promotion policies and focus instead on reducing information asymmetries and supporting development of clusters. Copyright 2004, Oxford University Press.
Download Info
To our knowledge, this item is not available for
download. To find whether it is available, there are three
options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page
whether it is in fact available.
3. Perform a search for a similarly titled item that would be
available.
For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).
Related research
Keywords:
Other versions of this item:
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)
James H. Love & Stephen Roper & Jun Du, 2007.
"Innovation, Ownership and Profitability,"
DRUID Working Papers
07-10, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
[Downloadable!]