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The Trade-Productivity Nexus in the European Economy

Author

Listed:
  • Neil Foster
  • Roman Stöllinger
  • Carlo Altomonte
  • Richard Kneller

Abstract

This FIW Special – International Economics contains a policy report on the relationship between trade and productivity in the European Economy. The reports consists of three chapters which all mainly deal with empirical evidence from firm level but with each chapter focusing on a specific aspect of the trade and productivity nexus. Chapter 1 presents some initial findings on the relationship between exporting and productivity for Austrian exporters in the manufacturing industry. Chapter 2 offers new insights into the relationship between exporting and productivity by introducing the cross-country dimension of the export behaviour and internationalisation strategies of European firms. This kind of analysis became possible due to a recently compiled cross-country firm level data set covering seven European countries. Chapter 3 focuses on the causality between exporting and productivity which is a key question also for economic policy. The chapter summarises existing results on self-selection into exporting and the learning-by-exporting hypothesis but also acknowledges that productivity growth is not only driven by within-firm productivity growth but also the reallocation of resources between firms, the entry and exit of firms as well as shifts of resources between industries.

Suggested Citation

  • Neil Foster & Roman Stöllinger & Carlo Altomonte & Richard Kneller, 2012. "The Trade-Productivity Nexus in the European Economy," FIW Specials series 005, FIW.
  • Handle: RePEc:wsr:fiwspe:y:2012:i:005
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    References listed on IDEAS

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    More about this item

    Keywords

    firm productivity; internationalisation of firms; export premia; export starters; learning-by-exporting;

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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