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Firms’ International Status and Heterogeneity in Performance: Evidence From Italy

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Author Info
Alfredo Minerva (Università di Bologna)
Lorenzo Casaburi (Università di Bologna)
Valeria Gattai (Università di Bologna, ISESAO, Università Commerciale “L. Bocconi”)

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Abstract

This paper revisits the empirical evidence about the link between firms’ performance and their international status, based on a large sample of Italian enterprises. To this purpose, we merged two waves of the Capitalia survey (1998-2000, and 2001-2003) retrieving firm level data for roughly 7,000 units. Three results stand out from our empirical exercise. First, firms that engage in the foreign production of final goods, in addition to export activities, are more productive than firms that only export abroad. Second, firms that engage in final goods off-shoring are more productive than firms that engage in inputs off-shoring. Third, in terms of the productivity dynamics over the period 1998-2003, exporters’ performance in Italy was not any better than the non-exporters’ one. Our results support the view that the better performance (in static terms) of globally engaged firms is chiefly due to the selection caused by the fixed costs associated to international operations.

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Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2008.3.

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Date of creation: Jan 2008
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Handle: RePEc:fem:femwpa:2008.3

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Related research
Keywords: Export; Heterogeneous Firms; Italy; Off-shoring; Productivity;

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Find related papers by JEL classification:
F10 - International Economics - - Trade - - - General
F20 - International Economics - - International Factor Movements and International Business - - - General
L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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