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Exports and Productivity Selection Effects for Dutch Firms

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  • Henk Kox
  • Hugo Rojas-Romagosa

Abstract

This study presents recently available data on the microstructure of Dutch exports and the relation between export participation and productivity at the firrm and establishment-level. We test whether recent theories of international trade with heterogeneous firms can explain the patterns in the Dutch data. This study presents recently available data on the microstructure of Dutch exports and the relation between export participation and productivity at the firrm and establishment-level. We test whether recent theories of international trade with heterogeneous firms can explain the patterns in the Dutch data. We find significant evidence that firms self-select into export participation, even after controlling for sector and firm-specific characteristics. In general, only the most productive Dutch firms participate in exports and foreign direct investment. In addition, we find evidence for the learning-by-exporting hypothesis once we control for the firm's distance to the international productivity frontier. Background document: CPB Memorandum 250
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Suggested Citation

  • Henk Kox & Hugo Rojas-Romagosa, 2010. "Exports and Productivity Selection Effects for Dutch Firms," De Economist, Springer, vol. 158(3), pages 295-322, September.
    • Handle: RePEc:kap:decono:v:158:y:2010:i:3:p:295-322
    DOI: 10.1007/s10645-010-9147-0
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    More about this item

    Keywords

    heterogeneous firms; productivity; exports; FDI; firm self selection; D21; D24; F14; F23; L1;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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