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International Trade and Productivity: Firm-Level Evidence from Ukraine

Author

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  • Yevgeniya Shevtsova

Abstract

The paper empirically assesses microeconomic exporting-productivity nexus using the data for Ukrainian manufacturing firms for the years 2000-2005. The results of the estimation show that firms with higher total factor productivity (TFP) levels in the period prior to entry are much more likely to enter export markets. Also age, size and intangible assets of the firm have significant positive influence on the probability of exporting. In testing learning-by-exporting effect I employ propensity score matching to address issues of endogeneity and sample selection. When the estimation is done for the whole universe of firms in the dataset, the results go in line with common trends and suggest significant positive post-entry productivity effect for the firms that enter export markets for the first time (in the t, t+1 and t+2 periods). At the industry level the results confirm the presence of learning-by-exporting effect in some industries. However the effect is not universal and varies between different types of exporting firms.

Suggested Citation

  • Yevgeniya Shevtsova, 2010. "International Trade and Productivity: Firm-Level Evidence from Ukraine," ESCIRRU Working Papers 20, DIW Berlin, German Institute for Economic Research.
  • Handle: RePEc:diw:diwesc:diwesc20
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    File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.353284.de/diw_escirru0020.pdf
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    Cited by:

    1. Yevgeniya Shevtsova, 2012. "International Trade and Productivity: Does Destination Matter?," Discussion Papers 12/18, Department of Economics, University of York.

    More about this item

    Keywords

    exports; TFP; control function; matching; sample selection; endogeneity;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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