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Does Exporting Increase Productivity? A Microeconometric Analysis of Matched Firms

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  • Sourafel Girma
  • David Greenaway
  • Richard Kneller

Abstract

Exporting involves sunk costs, so some firms export whilst others do not. This proposition derives from a number of models of firm behavior and has been exposed to microeconometric analysis. Evidence from the latter suggests that exporting firms are generally more productive than nonexporters. They self-select, in that they are more productive before they enter export markets, but the evidence suggests that entry does not make them any more productive. This paper investigates exporting and firm performance for a large panel of UK manufacturing firms, applying matching techniques. The authors find that exporters are more productive and they do self-select. In contrast to other evidence, however, exporting further increases firm productivity. Copyright Blackwell Publishing Ltd 2004..

Suggested Citation

  • Sourafel Girma & David Greenaway & Richard Kneller, 2004. "Does Exporting Increase Productivity? A Microeconometric Analysis of Matched Firms," Review of International Economics, Wiley Blackwell, vol. 12(5), pages 855-866, November.
  • Handle: RePEc:bla:reviec:v:12:y:2004:i:5:p:855-866
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    References listed on IDEAS

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    1. Andrew B. Bernard & J. Bradford Jensen, 2004. "Why Some Firms Export," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 561-569, May.
    2. Andrew B Bernard & J Bradford Jensen, 2001. "Exporting and Productivity: The Importance of Reallocation," Working Papers 01-02, Center for Economic Studies, U.S. Census Bureau.
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