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Export and Firm Performance: Evidence on Productivity and Profitability of Italian Companies

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  • Marco Grazzi

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Abstract

Empirical research in international trade has shown that exporting firms display higher productivity than their non-exporting competitors. This paper focuses on the relation between export and profitability. Our evidence on Italian exporting firms shows that 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”. Copyright Springer Science+Business Media, LLC 2012

Suggested Citation

  • Marco Grazzi, 2012. "Export and Firm Performance: Evidence on Productivity and Profitability of Italian Companies," Journal of Industry, Competition and Trade, Springer, vol. 12(4), pages 413-444, December.
  • Handle: RePEc:kap:jincot:v:12:y:2012:i:4:p:413-444 DOI: 10.1007/s10842-011-0102-9
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    Cited by:

    1. repec:krk:eberjl:v:2:y:2014:i:4:p:9-29 is not listed on IDEAS
    2. Nanditha Mathew, 2017. "Drivers of firm growth: micro-evidence from Indian manufacturing," Journal of Evolutionary Economics, Springer, pages 585-611.
    3. Diana Alexandra Gonçalves Costa & Ana Teresa Cunha de Pinho Tavares Lehmann, 2015. "Performance Differences between Exporters and Non-Exporters: the Case of Portugal," FEP Working Papers 569, Universidade do Porto, Faculdade de Economia do Porto.
    4. Grazzi, Marco & Sanzo, Roberto & Secchi, Angelo & Zeli, Alessandro, 2013. "The building process of a new integrated system of business micro-data 1989–2004," Journal of Economic and Social Measurement, IOS Press, issue 4, pages 291-324.
    5. Valeria Gattai, 2015. "Internationalisation and performance at the firm-level: what we learn from Italy," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(4), pages 475-509, December.
    6. Di Cintio, Marco & Ghosh, Sucharita & Grassi, Emanuele, 2017. "Firm growth, R&D expenditures and exports: An empirical analysis of italian SMEs," Research Policy, Elsevier, pages 836-852.
    7. Addison, John T. & Portugal, Pedro & Vilares, Hugo, 2015. "Sources of the Union Wage Gap: Results from High-Dimensional Fixed Effects Regression Models," IZA Discussion Papers 9221, Institute for the Study of Labor (IZA).
    8. Cenk Gokce ADAS, 2016. "Exporting Firms, Productivity And Profitabiliy: A Survey Of The Evidence From Manufacturing Industries," Proceedings of International Academic Conferences 3606362, International Institute of Social and Economic Sciences.
    9. Vu, Van Huong, 2012. "Private manufacturing SMEs survival and growth in Vietnam: The role of export participation," MPRA Paper 42489, University Library of Munich, Germany.
    10. Azize Esmeray & Murat Esmeray, 2016. "The Relationship Between Profit and Export Performance Revisited: Evidence from Turkish Companies," International Journal of Economics and Financial Issues, Econjournals, vol. 6(3), pages 1035-1037.
    11. Saara Tamminen & den Berg Marcel van & Marrewijk Charles van, 2016. "Trade, Productivity and Profits: On Profit levels and Profit margins," Working Papers 80, Government Institute for Economic Research Finland (VATT).
    12. Antoine Berthou & Emmanuel Dhyne & Matteo Bugamelli & Ana-Maria Cazacu & Calin-Vlad Demian & Peter Harasztosi & Tibor Lalinsky & Jaanika Meriküll & Filippo Oropallo & Ana Cristina Soares, 2015. "Assessing European firms’ exports and productivity distributions : The CompNet trade module," Working Paper Research 282, National Bank of Belgium.
    13. Marco Grazzi & Nanditha Mathew & Daniele Moschella, 2017. "Efficiency, innovation, and imported inputs: determinants of export performance among Indian manufacturing firms," LEM Papers Series 2017/09, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    14. Joachim Wagner, 2012. "International trade and firm performance: a survey of empirical studies since 2006," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 148(2), pages 235-267, June.
    15. Valeria Gattai, 2015. "Foreign exposure and heterogeneous performance of Italian firms: A survey of the empirical literature (1992-2014)," Working Papers 300, University of Milano-Bicocca, Department of Economics, revised Apr 2015.
    16. Dosi, Giovanni & Grazzi, Marco & Moschella, Daniele, 2015. "Technology and costs in international competitiveness: From countries and sectors to firms," Research Policy, Elsevier, pages 1795-1814.
    17. Heather D Gibson & Georgia Pavlou, 2017. "Exporting and performance: evidence from Greek firms," Working Papers 228, Bank of Greece.
    18. M. Grazzi & D. Moschella, 2016. "Small, young, and exporters: New evidence on the determinants of firm growth," Working Papers wp1068, Dipartimento Scienze Economiche, Universita' di Bologna.
    19. repec:mic:tmpjrn:v:13:y:2017:i:01:p:85-96 is not listed on IDEAS

    More about this item

    Keywords

    trade; export premium; systematic and occasional exporters; productivity; profitability; international competition; F1; D2; L6;

    JEL classification:

    • F1 - International Economics - - Trade
    • D2 - Microeconomics - - Production and Organizations
    • L6 - Industrial Organization - - Industry Studies: Manufacturing

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