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INTERNATIONAL TRADE AND FIRM PRODUCTIVITY WITHIN THE ITALIAN MANUFACTURING SECTOR: Self-Selection or Learning-by-Exporting?

  • Michele Imbruno

    ()

The ongoing process of international economic integration has induced several academic researchers and policy makers to deepen increasingly issues about the relationship between international trade and economic growth. More in particular, the attention is increasingly focusing on the link between exporting and firm performance, acknowledging the extreme relevance of 'firm heterogeneity'. This paper investigates empirically the exporting-productivity linkage in the Italian manufacturing sector, following a brief overview of recent literature. By using firm-level panel data for the years 2000 and 2003, we find that exporters are more productive than non-exporters and this productivity gap could be due to the self-selection mechanism – solely the high-performance firms are able to serve foreign markets – rather than post-entry effects.

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Paper provided by Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia in its series Quaderni DSEMS with number 21-2008.

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Length: 33 pages
Date of creation: Dec 2008
Date of revision:
Handle: RePEc:ufg:qdsems:21-2008
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  1. Francesco Serti & Chiara Tomasi, 2008. "Self-Selection and Post-Entry Effects of Exports: Evidence from Italian Manufacturing Firms," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 144(4), pages 660-694, December.
  2. Andrew B. Bernard & Jonathan Eaton & J. Bradford Jensen & Samuel Kortum, 2000. "Plants and Productivity in International Trade," Boston University - Institute for Economic Development 105, Boston University, Institute for Economic Development.
  3. David Greenaway & Richard Kneller, 2007. "Firm heterogeneity, exporting and foreign direct investment," Economic Journal, Royal Economic Society, vol. 117(517), pages F134-F161, 02.
  4. Rubinstein, Yona & Helpman, Elhanan & Melitz, Marc, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," Scholarly Articles 3228230, Harvard University Department of Economics.
  5. Andrew B. Bernard & J. Bradford Jensen, 1997. "Exceptional Exporter Performance: Cause, Effect, or Both?," NBER Working Papers 6272, National Bureau of Economic Research, Inc.
  6. David Greenaway & Zhihong Yu, 2004. "Firm-level interactions between exporting and productivity: Industry-specific evidence," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 140(3), pages 376-392, September.
  7. Andrew B. Bernard & Stephen Redding & Peter K. Schott, 2004. "Comparative advantage and heterogeneous firms," LSE Research Online Documents on Economics 3700, London School of Economics and Political Science, LSE Library.
  8. Piergiuseppe Morone & Carmelo Petraglia & Giuseppina Testa, 2007. "Research, Knowledge Spillovers and Innovation," Birkbeck Working Papers in Economics and Finance 0713, Birkbeck, Department of Economics, Mathematics & Statistics.
  9. Thomas Chaney, 2008. "Distorted Gravity: The Intensive and Extensive Margins of International Trade," American Economic Review, American Economic Association, vol. 98(4), pages 1707-21, September.
  10. Andrew B. Bernard & J. Bradford Jensen, 2001. "Why Some Firms Export," NBER Working Papers 8349, National Bureau of Economic Research, Inc.
  11. Roberto Alvarez & Ricardo López, 2005. "Exporting and performance: evidence from Chilean plants," Canadian Journal of Economics, Canadian Economics Association, vol. 38(4), pages 1384-1400, November.
  12. Bernard, Andrew B. & Jensen, J. Bradford & Schott, Peter K., 2006. "Trade costs, firms and productivity," Journal of Monetary Economics, Elsevier, vol. 53(5), pages 917-937, July.
  13. Van Biesebroeck, Johannes, 2005. "Exporting raises productivity in sub-Saharan African manufacturing firms," Journal of International Economics, Elsevier, vol. 67(2), pages 373-391, December.
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