The Role Of Product Level Entry And Exit In Export And Productivity Growth: Evidence From Estonia
Recent empirical studies of international trade have stressed that firm level decisions about the number of export products or markets represent an important margin of adjustment in response to globalization and changes in economic conditions. We investigate how decisions about the export product mix are associated with aggregate export dynamics and productivity of firms. For that purpose we use detailed product data and export market level data of the full population of Estonia’s firms. Decomposition analysis of trade flows shows that both the relative importance of firms starting exporting and the role of product level churning (firms adding and dropping products) in total Estonian export growth increases significantly after accession to the EU in 2004. We show that starting to export and adding and dropping export products in the same period is associated with higher firm productivity compared to exporters that keep their export mix unchanged or decrease its breadth. Dropping peripheral products is associated with higher productivity only in the case of firms with a relatively large number of export products.
|Date of creation:||2012|
|Contact details of provider:|| Postal: Narva mnt 4, 51009 Tartu|
Phone: (+372 7) 376 310
Fax: (+372 7) 376 312
Web page: http://www.mtk.ut.ee
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sergio de Nardis & Carmine Pappalardo, 2009. "Export, Productivity and Product Switching: The Case of Italian Manufacturing Firms," ISAE Working Papers 110, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
- Marc J. Melitz & Gianmarco I.P. Ottaviano, 2005.
"Market Size, Trade, and Productivity,"
Development Working Papers
201, Centro Studi Luca d'Agliano, University of Milano.
- Ottaviano, Gianmarco & Melitz, Marc, 2008. "Market Size, Trade, and Productivity," Scholarly Articles 3229096, Harvard University Department of Economics.
- Marc J. Melitz & Gianmarco I.P. Ottaviano, 2005. "Market Size, Trade, and Productivity," NBER Working Papers 11393, National Bureau of Economic Research, Inc.
- Lucas Navarro, 2008.
"Plant Level Evidence on Product Mix Changes in Chilean Manufacturing,"
ILADES-Georgetown University Working Papers
inv210, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines.
- Lucas Navarro, 2012. "Plant level evidence on product mix changes in Chilean manufacturing," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 21(2), pages 165-195, February.
- Andrew Bernard & J. Bradford Jensen & Stephen Redding & Peter Schott, 2007.
"Firms in International Trade,"
07-14, Center for Economic Studies, U.S. Census Bureau.
- Andrew B. Bernard & J. Bradford Jensen & Stephen J. Redding & Peter K. Schott, 2007. "Firms in International Trade," NBER Working Papers 13054, National Bureau of Economic Research, Inc.
- Andrew.B Bernard & J. Bradford Jensen & Stephen Redding & Peter K. Schott, 2007. "Firms in international trade," LSE Research Online Documents on Economics 3682, London School of Economics and Political Science, LSE Library.
- Andrew B. Bernard & J. Bradford Jensen & Stephen Redding & Peter K. Schott, 2007. "Firms in International Trade," CEP Discussion Papers dp0795, Centre for Economic Performance, LSE.
- Bernard, Andrew B. & Jensen, J Bradford & Redding, Stephen J. & Schott, Peter K., 2007. "Firms in International Trade," CEPR Discussion Papers 6277, C.E.P.R. Discussion Papers.
- Antoine Berthou & Lionel Fontagné, 2013.
"How do Multiproduct Exporters React to a Change in Trade Costs?,"
Scandinavian Journal of Economics,
Wiley Blackwell, vol. 115(2), pages 326-353, 04.
- Antoine Berthou & Lionel Fontagné, 2013. "How do Multiproduct Exporters React to a Change in Trade Costs?," PSE - Labex "OSE-Ouvrir la Science Economique" hal-00975562, HAL.
- Fabrice Defever & Benedikt Heid & Mario Larch, 2011.
CESifo Working Paper Series
3672, CESifo Group Munich.
- Eckel, Carsten & Neary, J. P., 2010.
"Multi-product firms and flexible manufacturing in the global economy,"
Munich Reprints in Economics
20525, University of Munich, Department of Economics.
- Carsten Eckel & J. Peter Neary, 2010. "Multi-Product Firms and Flexible Manufacturing in the Global Economy," Review of Economic Studies, Oxford University Press, vol. 77(1), pages 188-217.
- Peter Neary & Carsten Eckel, 2006. "Multi-Product Firms and Flexible Manufacturing in the Global Economy," Economics Series Working Papers 292, University of Oxford, Department of Economics.
- Eckel, Carsten & Neary, J Peter, 2006. "Multi-Product Firms and Flexible Manufacturing in the Global Economy," CEPR Discussion Papers 5941, C.E.P.R. Discussion Papers.
- Carsten Eckel & J. Peter Neary, 2006. "Multi-product firms and flexible manufacturing in the global economy," Working Papers 200608, School of Economics, University College Dublin.
- Leonardo Iacovone & BeataS. Javorcik, 2010. "Multi-Product Exporters: Product Churning, Uncertainty and Export Discoveries," Economic Journal, Royal Economic Society, vol. 120(544), pages 481-499, 05.
- Jaan Masso & Priit Vahter, 2011. "Exporting And Productivity: The Effects Of Multi-Market And Multi-Product Export Entry," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 83, Faculty of Economics and Business Administration, University of Tartu (Estonia).
- Freund, Caroline & Pierola, Martha Denisse, 2010. "Export entrepreneurs : evidence from Peru," Policy Research Working Paper Series 5407, The World Bank.
When requesting a correction, please mention this item's handle: RePEc:mtk:febawb:86. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anne Reino)
If references are entirely missing, you can add them using this form.