Unobserved firm heterogeneity and the size-exports nexus: Evidence from German panel data
This paper starts from the stylized fact that firm size and exporting tends to be positively related. Using large sets of establishment panel data for three different industries from official statistics evidence is presented that the familiar picture of an export/sales ratio that ceteris paribus increases (at a decreasing rate) with firm size vanishes if unobserved firm heterogeneity is controlled for in a fixed effects fractional logit regression model. This finding is well in line with the fact that many small firms are 'hidden export champions'.
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Volume (Year): 139 (2003)
Issue (Month): 1 (March)
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- Alessandro Sterlacchini, 2001. "The determinants of export performance: A firm-level study of Italian manufacturing," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 137(3), pages 450-472, September.
- Alan S. Blinder, 1990. "Learning by Asking Those Who Are Doing," Eastern Economic Journal, Eastern Economic Association, vol. 16(4), pages 297-306, Oct-Dec.
- Hirsch, Seev & Adar, Zvi, 1974. "Firm size and export performance," World Development, Elsevier, vol. 2(7), pages 41-46, July.
- Joseph Hilbe, 1993. "Generalized linear models," Stata Technical Bulletin, StataCorp LP, vol. 2(11).
- Leslie E. Papke & Jeffrey M. Wooldridge, 1993.
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0147, National Bureau of Economic Research, Inc.
- Papke, Leslie E & Wooldridge, Jeffrey M, 1996. "Econometric Methods for Fractional Response Variables with an Application to 401(K) Plan Participation Rates," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 619-32, Nov.-Dec..
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