Exceptional Exporter Performance: Cause, Effect, or Both?
A growing body of empirical work has documented the superior performance characteristics" of exporting plants and firms relative to non-exporters. Employment, shipments and capital intensity are all higher at exporters at any given moment. This paper asks whether good" firms become exporters or whether exporting improves firm performance. The evidence is quite" clear on one point: good firms become exporters, both growth rates and levels of success measures" are higher ex-ante for exporters. The benefits of exporting for the firm are less clear. Employment" growth and the probability of survival are both higher for exporters; however growth is not superior, particularly over longer horizons.
|Date of creation:||Nov 1997|
|Date of revision:|
|Publication status:||published as Journal of International Economics, Vol. 47, no. 1 (February 1999): 1-25.|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
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- Bernard, A. & Wagner, J., 1996.
"Exports and Success in German Manufacturing,"
96-10, Massachusetts Institute of Technology (MIT), Department of Economics.
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"Exporters, skill upgrading, and the wage gap,"
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01-05, Center for Economic Studies, U.S. Census Bureau.
- Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-26, November.
- Roberts, Mark J & Tybout, James R, 1997. "The Decision to Export in Colombia: An Empirical Model of Entry with Sunk Costs," American Economic Review, American Economic Association, vol. 87(4), pages 545-64, September.
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