Export, Productivity and Product Switching: The Case of Italian Manufacturing Firms
AbstractDuring the first half of the current decade, with rising competitive pressures, Italian manufacturing firms were forced to undertake a process of restructuring which had positive repercussions on export performance. This paper carries out empirical analysis using a panel of exporting firms obtained by matching firm-level information gathered by ISTAT and ISAE surveys. Two main channels of adjustment are investigated: inter and intra-firm. On the inter-firm side, we find that exporters were actually more productive: exporting was an essential outcome of pre-existing productivity advantages that led to self-selection of more productive businesses in international markets. As for the intra-firm adjustment, we show that the high frequency of product switching behaviour within exporting firms was significantly correlated with firm-level productivity growth, and that it contributed to a reallocation of economic activity within firms to more productive uses.
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Bibliographic InfoPaper provided by ISTAT - Italian National Institute of Statistics - (Rome, ITALY) in its series ISAE Working Papers with number 110.
Length: 33 pages
Date of creation: Mar 2009
Date of revision:
heterogeneity; exporting; productivity; product switching.;
Find related papers by JEL classification:
- F10 - International Economics - - Trade - - - General
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-05-02 (All new papers)
- NEP-BEC-2009-05-02 (Business Economics)
- NEP-CSE-2009-05-02 (Economics of Strategic Management)
- NEP-EFF-2009-05-02 (Efficiency & Productivity)
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