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Are Non-Exporters Locked out of Foreign Markets because of Low Productivity?: Evidence from New Zealand Agriculture and Forestry

Author

Listed:
  • Kris Iyer

    (Ministry of Economic Development, Government of New Zealand)

  • Philip Andrew Stevens

    (Ministry of Economic Development, Government of New Zealand)

  • Darran Austin

    (Ministry of Agriculture and Forestry, Government of New Zealand)

Abstract

Self-selection of productive firms to exporting suggests that non-exporters are less productive and locked out of international markets due to low productivity. Using a panel dataset of 88,752 New Zealand agriculture and forestry sector firms over the period 2000-07, this paper measures the productivity of exporters and non-exporters separately. The paper finds that exporters are, on average, twice as productive as non-exporters. Across both exporters and non-exporters, we report a mixed rate of productivity growth: negative until the median and positive beyond. Exporters record a higher negative growth rate relative to non-exporters (below the median) and also a higher positive growth rate (beyond the median). Analysis of the productivity distribution in quantiles suggests that the sub-set of non-exporters who have productivity levels similar to that of exporters is large. For this sub-set of firms, it would be erroneous to conclude that the export propensity decision is determined by low productivity.

Suggested Citation

  • Kris Iyer & Philip Andrew Stevens & Darran Austin, 2010. "Are Non-Exporters Locked out of Foreign Markets because of Low Productivity?: Evidence from New Zealand Agriculture and Forestry," Economics Bulletin, AccessEcon, vol. 30(2), pages 1694-1709.
    • Handle: RePEc:ebl:ecbull:eb-10-00168
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    References listed on IDEAS

    as
    1. De Loecker, Jan, 2007. "Do exports generate higher productivity? Evidence from Slovenia," Journal of International Economics, Elsevier, vol. 73(1), pages 69-98, September.
    2. Van Biesebroeck, Johannes, 2005. "Exporting raises productivity in sub-Saharan African manufacturing firms," Journal of International Economics, Elsevier, vol. 67(2), pages 373-391, December.
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    More about this item

    Keywords

    agriculture; forestry; productivity; New Zealand;
    All these keywords.

    JEL classification:

    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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