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Export Behavior and Firm Productivity in German Manufacturing: A firm-level analysis

Author

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  • Jens Matthias Arnold

    (Bocconi University, Milan, Italy)

  • Katrin Hussinger

    (Centre for European Economic Research - ZEW, Mannheim, Germany)

Abstract

This paper analyses the relationship between firm productivity and export behavior in German manufacturing firms. We examine whether productivity increases the probability of exporting, and assert that there is a causal relationship from high productivity to entering foreign markets, as postulated by the recent literature on international trade with heterogeneous firms. In estimating productivity, we control for a possible simultaneity bias by using semiparametric estimation techniques. Moreover, we apply a matching technique in order to analyze whether the presence in international markets enabled firms to achieve further productivity improvements, without finding significant evidence for this. We conclude that high-productivity firms self-select themselves into export markets, while exporting itself does not play a significant role for productivity improvements.

Suggested Citation

  • Jens Matthias Arnold & Katrin Hussinger, 2004. "Export Behavior and Firm Productivity in German Manufacturing: A firm-level analysis," International Trade 0403007, University Library of Munich, Germany, revised 02 Nov 2004.
  • Handle: RePEc:wpa:wuwpit:0403007
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    References listed on IDEAS

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    More about this item

    Keywords

    Total Factor Productivity; Exports; Export-led growth; Heterogeneous firms.;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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