Barriers to exporting: Firm-Level Evidence from Germany
AbstractRecent literature stresses the importance of low productivity as a barrier to the international expansion of firms. But financial frictions or adverse employment conditions at home could matter as well. In this paper, we present new empirical evidence on the importance of these factors. We use a detailed micro-level dataset of German firms which simultaneously provides information on exports, financial frictions, and labor market conditions. Our paper has three main findings. First, in line with earlier literature, we find a positive impact of size and productivity on firms’ export activities. Second, financial constraints affect the entry into foreign market (extensive margin) more than the volume of exports (intensive margin). Third, labor market conditions have a mixed impact on export activities. The most consistent finding is that firms covered by collective bargaining agreements are less likely to be exporters and export less.
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Bibliographic InfoPaper provided by Centro Studi Luca d\'Agliano, University of Milano in its series Development Working Papers with number 268.
Date of creation: 30 Nov 2008
Date of revision:
multinational firms; exports; firm heterogeneity; productivity;
Find related papers by JEL classification:
- F2 - International Economics - - International Factor Movements and International Business
- G2 - Financial Economics - - Financial Institutions and Services
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-01-03 (All new papers)
- NEP-EFF-2009-01-03 (Efficiency & Productivity)
- NEP-INT-2009-01-03 (International Trade)
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- Alexander Eickelpasch & Alexander Vogel, 2009.
"Determinants of Export Behaviour of German Business Services Companies,"
Discussion Papers of DIW Berlin
876, DIW Berlin, German Institute for Economic Research.
- Alexander Eickelpasch & Alexander Vogel, 2009. "Determinants of Export Behaviour of German Business Services Companies," Working Paper Series in Economics 123, University of Lüneburg, Institute of Economics.
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