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Productivity and Export Market Participation: Evidence from Colombia

Author

Listed:
  • Camila Casas

    (Banco de la República de Colombia)

  • Federico J. Díez

    (Federal Reserve Bank of Boston)

  • Alejandra González

    (Banco de la República de Colombia)

Abstract

We study the relationship between total factor productivity (TFP) and exporting decisions for Colombian manufacturing firms during 2005-2013. We find that productivity increases a firm's probability of being an exporter, and that exporters have higher productivity, with a premium as high as 85 percent. These findings are robust to several TFP measures. Moreover, we find that not all exporters are equal: firms that export continuously, that export a greater number of products, and/or that export to a larger number of destinations tend to be more productive. We do not find, however, any relationship between productivity and the type of destination or exported product. Finally, we find evidence that future exporters have an ex ante productivity advantage, and (weaker) evidence of TFP increasing after a firm becomes an exporter.

Suggested Citation

  • Camila Casas & Federico J. Díez & Alejandra González, 2015. "Productivity and Export Market Participation: Evidence from Colombia," Borradores de Economia 876, Banco de la Republica de Colombia.
    • Handle: RePEc:bdr:borrec:876
    DOI: 10.32468/be.876
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    Cited by:

    1. Joachim Wagner, 2016. "A survey of empirical studies using transaction level data on exports and imports," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(1), pages 215-225, February.
    2. Federico J. Diez & Jesse Mora & Alan C. Spearot, 2016. "Firms in international trade," Working Papers 16-25, Federal Reserve Bank of Boston.

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    More about this item

    Keywords

    Productivity; exporters; productivity premium; openness.;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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