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The export-growth relationship: estimating a dose-response function

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  • Helmut Fryges

Abstract

The relationship between individual firms' export behaviour and firm performance has been studied extensively in the economic literature. However, most studies from the field of economics only distinguish between exporting and nonexporting companies, using the firms' export status as a binary treatment variable and comparing the performance of exporting and nonexporting firms. This article introduces the newly developed generalized propensity score (GPS) methodology to the literature of individual firms' export behaviour. Instead of a binary treatment variable, the GPS method allows for continuous treatment, that is, different levels of the firms' export activities. Based on the GPS methodology, a dose-response function is estimated, depicting the relationship between the firms' export-sales ratio and their subsequent sales growth rate as a measure of firm performance.

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  • Helmut Fryges, 2009. "The export-growth relationship: estimating a dose-response function," Applied Economics Letters, Taylor & Francis Journals, vol. 16(18), pages 1855-1859.
    • Handle: RePEc:taf:apeclt:v:16:y:2009:i:18:p:1855-1859
    DOI: 10.1080/13504850701719496
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    Cited by:

    1. Helmut Fryges & Joachim Wagner, 2016. "Exports and Profitability — First Evidence for German Manufacturing Firms," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 7, pages 245-277, World Scientific Publishing Co. Pte. Ltd..
    2. Joachim Wagner, 2016. "From Estimation Results to Stylized Facts: Twelve Recommendations for Empirical Research in International Activities of Heterogeneous Firms," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 15, pages 479-514, World Scientific Publishing Co. Pte. Ltd..
    3. Mercedes Teruel & Alex Coad & Clemens Domnick & Florian Flachenecker & Peter Harasztosi & Mario Lorenzo Janiri & Rozalia Pal, 2022. "The birth of new HGEs: internationalization through new digital technologies," The Journal of Technology Transfer, Springer, vol. 47(3), pages 804-845, June.
    4. Helmut Fryges & Alexander Vogel & Joachim Wagner, 2021. "The Impact of R&D Activities on Exports of German Business Services Enterprises: First Evidence from a Continuous Treatment Approach," World Scientific Book Chapters, in: Joachim Wagner (ed.), MICROECONOMETRIC STUDIES OF FIRMS’ IMPORTS AND EXPORTS Advanced Methods of Analysis and Evidence from German Enterprises, chapter 15, pages 265-285, World Scientific Publishing Co. Pte. Ltd..
    5. Ida D'Attoma & Silvia Pacei, 2018. "Evaluating the Effects of Product Innovation on the Performance of European Firms by Using the Generalised Propensity Score," German Economic Review, Verein für Socialpolitik, vol. 19(1), pages 94-112, February.
    6. Guardabascio, Barbara & Ventura, Marco, 2013. "Estimating the dose-response function through the GLM approach," MPRA Paper 45013, University Library of Munich, Germany, revised 13 Mar 2013.
    7. Youssouf KIENDREBEOGO, 2012. "Export Activity and Productivity: New Evidence from the Egyptian Manufacturing Industry," Working Papers 201220, CERDI.
    8. Nenci, Silvia & Vurchio, Davide, 2023. "Modeling country-sectoral spillovers in generalized propensity score matching: An empirical test on trade data," Economic Modelling, Elsevier, vol. 124(C).
    9. Duarte, Pablo Daniel Palacios & García, María Luisa Saavedra, 2017. "El análisis de la competitividad de la industria manufacturera de exportación en México," Revista Tendencias, Universidad de Narino, vol. 18(2), pages 13-26, July.
    10. Zachary K. Collier & Walter L. Leite & Allison Karpyn, 2021. "Neural Networks to Estimate Generalized Propensity Scores for Continuous Treatment Doses," Evaluation Review, , vol. 45(1-2), pages 3-33, February.
    11. Teruel Carrizosa, Mercedes & Coad, Alexander & Domnick, Clemens & Flachenecker, Florian & Harasztosi, Péter & Janiri, Mario Lorenzo & Pál, Rozália, 2021. "The birth of new high growth enterprises: Internationalisation through new digital technologies," EIB Working Papers 2021/02, European Investment Bank (EIB).

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