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

Author

Listed:
  • Alexander Vogel

    (Leuphana University Lueneburg, Germany)

  • Joachim Wagner

    (Leuphana University Lueneburg, Germany)

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, 2012. "Exports, R&D and Productivity in German Business Services Firms: A test of the Bustos-model," Working Paper Series in Economics 247, University of Lüneburg, Institute of Economics.
    • Handle: RePEc:lue:wpaper:247
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    References listed on IDEAS

    as
    1. Alexander Vogel, 2009. "The German Business Services Statistics Panel 2003 to 2007," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 129(3), pages 515-522.
    2. Chad Syverson, 2011. "What Determines Productivity?," Journal of Economic Literature, American Economic Association, vol. 49(2), pages 326-365, June.
    3. Paula Bustos, 2011. "Trade Liberalization, Exports, and Technology Upgrading: Evidence on the Impact of MERCOSUR on Argentinian Firms," American Economic Review, American Economic Association, vol. 101(1), pages 304-340, February.
    4. Girma, Sourafel & Gorg, Holger & Strobl, Eric, 2004. "Exports, international investment, and plant performance: evidence from a non-parametric test," Economics Letters, Elsevier, vol. 83(3), pages 317-324, June.
    5. Joachim Wagner, 2006. "Exports, foreign direct investment, and productivity: evidence from German firm level data," Applied Economics Letters, Taylor & Francis Journals, vol. 13(6), pages 347-349.
    6. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
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    Cited by:

    1. 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.

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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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