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Export Behavior and Firm Productivity in German Manufacturing: A firm-level analysis

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  • Jens Matthias Arnold

    (Bocconi University, Milan, Italy)

  • Katrin Hussinger

    (Centre for European Economic Research - ZEW, Mannheim, Germany)

Abstract

This paper analyses the relationship between firm productivity and export behavior in German manufacturing firms. We examine whether productivity increases the probability of exporting, and assert that there is a causal relationship from high productivity to entering foreign markets, as postulated by the recent literature on international trade with heterogeneous firms. In estimating productivity, we control for a possible simultaneity bias by using semiparametric estimation techniques. Moreover, we apply a matching technique in order to analyze whether the presence in international markets enabled firms to achieve further productivity improvements, without finding significant evidence for this. We conclude that high-productivity firms self-select themselves into export markets, while exporting itself does not play a significant role for productivity improvements.

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File URL: http://128.118.178.162/eps/it/papers/0403/0403007.pdf
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Bibliographic Info

Paper provided by EconWPA in its series International Trade with number 0403007.

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Length: 32 pages
Date of creation: 23 Mar 2004
Date of revision: 02 Nov 2004
Handle: RePEc:wpa:wuwpit:0403007

Note: Type of Document - pdf; pages: 32.
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Web page: http://128.118.178.162

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Keywords: Total Factor Productivity; Exports; Export-led growth; Heterogeneous firms.;

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References

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