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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.
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    More about this item

    Keywords

    Exports; R&D; productivity; business services firms; Germany;

    JEL classification:

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

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