Evaluating the Contribution of Exporting to UK Productivity Growth: Some Microeconomic Evidence

Richard Ian Harris and Qian Cher Li ()

The World Economy, 2008, vol. 31, issue 2, pages 212-235

Abstract: This study assesses the contribution of exporting activities to aggregate productivity growth in the UK for all market-based sectors for the period 1996-2004, using a weighted FAME dataset. Based on decompositions of productivity growth, our findings suggest that, overall, exporting firms experience faster productivity growth than non-exporting firms and therefore contribute more to national productivity growth. In addition, aggregate productivity for exporters benefits from a large contribution from 'continuing' firms improving their productivity, as well as exporters that have been taken-over/merged or started-up as new firms. In contrast, most of the TFP improvement for non-exporters is attributable to lower productivity firms exiting, rather than from internal improvements or the productivity-enhancing impact of new firms. Copyright 2008 The Authors.

Date: 2008
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