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Exports, R&D and Productivity in German Business Services Firms: A Test of the Bustos-model

In: MICROECONOMETRIC STUDIES OF FIRMS’ IMPORTS AND EXPORTS Advanced Methods of Analysis and Evidence from German Enterprises

Author

Listed:
  • Alexander Vogel
  • Joachim Wagner

Abstract

This paper uses newly available data for German business services firms to test a hypothesis derived by Bustos (AER 2011) in a model that explains the decision of heterogeneous firms to export and to engage in R&D. Using a non-parametric test for first order stochastic dominance it is shown that, in line with this hypothesis, the productivity distribution of firms with exports and R&D dominates that of exporters without R&D, which in turn dominates that of firms that neither export nor engage in R&D. These results are in line with findings for firms from manufacturing industries. The model, therefore, seems to be useful to guide empirical work on the relation between exports, R&D and productivity for services firms, too.

Suggested Citation

  • Alexander Vogel & Joachim Wagner, 2021. "Exports, R&D and Productivity in German Business Services Firms: A Test of the Bustos-model," 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 16, pages 287-293, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9781786349699_0016
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    Cited by:

    1. is not listed on IDEAS
    2. Mogens Dilling-Hansen & Valdemar Smith, 2014. "R&D, export and productivity: testing the Bustos model on Danish data," Applied Economics Letters, Taylor & Francis Journals, vol. 21(11), pages 733-737, July.

    More about this item

    Keywords

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    JEL classification:

    • F1 - International Economics - - Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration

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