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The Efficient Triangle: Export Persistence, Human Capital, and Productivity

Author

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  • Eleonora Bartoloni
  • Maurizio Baussola
  • Andrea Marino
  • Davide Romaniello

Abstract

The impact of exports on productivity is a central theme in macroeconomics, explored in both the ‘learning by exporting’ and ‘Kaldor-Verdoorn law’ literature. We utilize a novel dataset of Italian firm microdata to build an empirical model examining the effect of persistent exporting on firm productivity. The model endogenizes a firm's export propensity using a probit specification that enables us to derive consistent estimates of the impact of exporting on productivity. In addition, we use the share of highly educated workers as a proxy of human capital to test the ability of persistently exporting firms to learn. This impact is derived using a biprobit specification, which enables us to endogenize the joint probability of being a continuously exporting firm while highly endowed with a skilled workforce. The results strongly support the hypothesis that persistent exporters show a significant productivity premium compared to occasional exporters. Moreover, the workforce's education level further increases productivity, with results supporting the hypothesis that highly educated shares of a firm's workforce enhance the ability to learn.

Suggested Citation

  • Eleonora Bartoloni & Maurizio Baussola & Andrea Marino & Davide Romaniello, 2025. "The Efficient Triangle: Export Persistence, Human Capital, and Productivity," Review of Political Economy, Taylor & Francis Journals, vol. 37(2), pages 431-455, March.
    • Handle: RePEc:taf:revpoe:v:37:y:2025:i:2:p:431-455
    DOI: 10.1080/09538259.2024.2383949
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