Using firm level data this study investigates the relation between export activity and firm's profitability. The paper shows that, contrary to other performance indicators such as productivity, exporting activity is not systematically associated to higher firm's profitability. This is shown both by means of non-parametric methods and, with an approach that is more standard within the empirical trade literature, by regression techniques that try to identify an "export premium".
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Paper provided by Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy in its series LEM Papers Series with number
2009/16.
Find related papers by JEL classification: F10 - International Economics - - Trade - - - General D20 - Microeconomics - - Production and Organizations - - - General L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General