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Exports and Productivity Growth: First Evidence from a Continuous Treatment Approach

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  • Helmut Fryges
  • Joachim Wagner

    ()

Abstract

A recent survey of 54 micro-econometric studies reveals that exporting firms are more productive than non-exporters. On the other hand, previous empirical studies show that exporting does not necessarily improve productivity. One possible reason for this result is that most previous studies are restricted to analysing the relationship between a firm's export status and the growth of its labour productivity, using the firms' export status as a binary treatment variable and comparing the performance of exporting and non-exporting firms. In this paper, we apply the newly developed generalised propensity score (GPS) methodology that allows for continuous treatment, that is, different levels of the firms' export activities. Using the GPS method and a large panel data set for German manufacturing firms, we estimate the relationship between a firm's export-sales ratio and its labour productivity growth rate. We find that there is a causal effect of firms' export activities on labour productivity growth. However, exporting improves labour productivity growth only within a sub-interval of the range of firms' export-sales ratios.

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Bibliographic Info

Article provided by Springer in its journal Review of World Economics.

Volume (Year): 144 (2008)
Issue (Month): 4 (December)
Pages: 695-722

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Handle: RePEc:spr:weltar:v:144:y:2008:i:4:p:695-722

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Related research

Keywords: Export-sales ratio; labour productivity; continuous treatment; dose-response function;

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References

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Citations

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Cited by:
  1. Joachim Wagner, 2008. "Exports, Imports, and Productivity at the Firm Level. An International Perspective: Introduction by Guest Editor," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 144(4), pages 591-595, December.
  2. Hansen, Thorsten, 2010. "Exports and Productivity: An Empirical Analysis of German and Austrian Firm-Level Performance," Discussion Papers in Economics 11466, University of Munich, Department of Economics.
  3. Helmut Fryges & Joachim Wagner, 2010. "Exports and Profitability: First Evidence for German Manufacturing Firms," The World Economy, Wiley Blackwell, vol. 33(3), pages 399-423, 03.
  4. Carlos A. Flores, 2007. "Estimation of Dose-Response Functions and Optimal Doses with a Continuous Treatment," Working Papers 0707, University of Miami, Department of Economics.
  5. Joana C. Lima & Horácio C. Faustino, 2010. "Determinants of Portuguese Exports to Spain: An analysis at the enterprise level," Working Papers Department of Economics 2010/07, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
  6. Jun Du & Sourafel Girma, 2009. "The Effects of Foreign Acquisition on Domestic and Export Markets Dynamics in China," The World Economy, Wiley Blackwell, vol. 32(1), pages 164-177, 01.
  7. José L. González-Pernía & Iñaki Peña-Legazkue, 2011. "The impact of export-oriented entrepreneurship on regional economic growth," ERSA conference papers ersa11p1526, European Regional Science Association.
  8. Furlan, Benjamin & Oberhofer, Harald & Winner , Hannes, 2014. "A Note on Merger and Acquisition Evaluation," Working Papers in Economics and Finance 2014-2, University of Salzburg.
  9. Flores-Lagunes, Alfonso & Gonzalez, Arturo & Neumann, Todd C., 2007. "Estimating the Effects of Length of Exposure to a Training Program: The Case of Job Corps," IZA Discussion Papers 2846, Institute for the Study of Labor (IZA).
  10. Dr. Jörg Höhne & Julia Höninger, 2012. "Morpheus – Remote access to micro data with a quality measure," Working Paper Series of the German Council for Social and Economic Data 203, German Council for Social and Economic Data (RatSWD).
  11. Massimiliano Bratti & Giulia Felice, 2012. "Buyer-Supplier Relationships, Internationalization and Product Innovation," Development Working Papers 327, Centro Studi Luca d\'Agliano, University of Milano, revised 13 Nov 2012.
  12. Joachim Wagner, 2012. "The Impact of R&D Activities on Exports of German Business Services Enterprises: First evidence from a continuous treatment approach," Working Paper Series in Economics 260, University of Lüneburg, Institute of Economics.
  13. Koch, Michael & Egger, Hartmut, 2013. "Trade and the Firm-Internal Allocation of Workers to Tasks," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79841, Verein für Socialpolitik / German Economic Association.
  14. Serrano-Domingo, Guadalupe & Requena-Silvente, Francisco, 2013. "Re-examining the migration–trade link using province data: An application of the generalized propensity score," Economic Modelling, Elsevier, vol. 32(C), pages 247-261.
  15. Guardabascio, Barbara & Ventura, Marco, 2013. "Estimating the dose-response function through the GLM approach," MPRA Paper 45013, University Library of Munich, Germany, revised 13 Mar 2013.
  16. Dr. Jörg Höhne & Julia Höninger, 2012. "Das Verfahren Morpheus – Auf dem Weg zu Remote Access," Working Paper Series of the German Council for Social and Economic Data 205, German Council for Social and Economic Data (RatSWD).

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