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Exports, R&D and Productivity in German Business Services Firms: A test of the Bustos-model

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  • Alexander Vogel

    ()
    (Leuphana University Lueneburg, Germany)

  • Joachim Wagner

    ()
    (Leuphana University Lueneburg, Germany)

Abstract

This paper uses newly available data for German business services firms to test a hypothesis derived by Bustos (AER 2011) in a model that explains the decision of heterogeneous firms to export and to engage in R&D. Using a non-parametric test for first order stochastic dominance it is shown that, in line with this hypothesis, the productivity distribution of firms with exports and R&D dominates that of exporters without R&D, which in turn dominates that of firms that neither export nor engage in R&D. These results are in line with findings for firms from manufacturing industries. The model, therefore, seems to be useful to guide empirical work on the relation between exports, R&D and productivity for services firms, too.

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Bibliographic Info

Paper provided by University of Lüneburg, Institute of Economics in its series Working Paper Series in Economics with number 247.

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Length: 15 pages
Date of creation: Aug 2012
Date of revision:
Handle: RePEc:lue:wpaper:247

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Web page: http://leuphana.de/institute/ivwl.html

Related research

Keywords: Exports; R&D; productivity; business services firms; Germany;

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  1. Paula Bustos, 2011. "Trade Liberalization, Exports, and Technology Upgrading: Evidence on the Impact of MERCOSUR on Argentinian Firms," American Economic Review, American Economic Association, vol. 101(1), pages 304-40, February.
  2. Alexander Vogel, 2009. "The German Business Services Statistics Panel 2003 to 2007," Working Paper Series in Economics 127, University of Lüneburg, Institute of Economics.
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