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Export-market dynamics and firm-level productivity: evidence for UK tradable sectors

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  • Richard Harris
  • Qian Cher Li

Abstract

This study empirically assesses the microeconomic productivity impact associated with export-market transitions, providing the first analysis for the whole tradable economy for the UK. Using weighted firm-level data for both UK production and service sectors covering the 1996--2004 period, and based on estimation for 14 industry groups separately, our findings show that a productivity effect resulting from UK firms entering and exiting export markets is present in many industries but it is not universal. Our overall estimate for the UK economy suggests a substantial postentry productivity gain for firms new to exporting; a negative productivity effect for firms exiting overseas markets; and significant productivity gains for those that are observed to have both switched into and out of export markets. We also find that such productivity effects are larger in the services, when compared to production (the latter encompassing agriculture, manufacturing, and construction). Copyright 2012 The Author 2011. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.

Suggested Citation

  • Richard Harris & Qian Cher Li, 2012. "Export-market dynamics and firm-level productivity: evidence for UK tradable sectors," Industrial and Corporate Change, Oxford University Press, vol. 21(3), pages 649-670, June.
  • Handle: RePEc:oup:indcch:v:21:y:2012:i:3:p:649-670
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    File URL: http://hdl.handle.net/10.1093/icc/dtr054
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    Cited by:

    1. MORIKAWA Masayuki, 2015. "Service Trade and Productivity: Firm-level evidence from Japan," Discussion papers 15030, Research Institute of Economy, Trade and Industry (RIETI).
    2. Raffaele Brancati & Emanuela Marrocu & Manuel Romagnoli & Stefano Usai, 2018. "Innovation activities and learning processes in the crisis: evidence from Italian export in manufacturing and services," Industrial and Corporate Change, Oxford University Press, vol. 27(1), pages 107-130.
    3. Shevtsova, Yevgeniya, 2015. "International Trade and Productivity: The Role of Industry and Export Destination," MPRA Paper 69793, University Library of Munich, Germany.
    4. Mogens Dilling-Hansen & Valdemar Smith, 2015. "R&D, export and productivity in business services firms: testing the Bustos model," Applied Economics Letters, Taylor & Francis Journals, vol. 22(16), pages 1309-1314, November.
    5. Carlo Reggiani & Yevgeniya Shevtsova, 2018. "Trade and Productivity in a Transition Economy: the Role of Industry and Export Destination," Journal of Industry, Competition and Trade, Springer, vol. 18(3), pages 395-428, September.

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