Barriers to exporting: Firm-Level Evidence from Germany

Christian Arndt, Claudia M. Buch and Anselm Mattes ()
Additional contact information
Christian Arndt: Institute for Applied Economic Research, IAW
Claudia M. Buch: University of Tubingen and CESifo

No 268, Development Working Papers from Centro Studi Luca d\'Agliano, University of Milano

Abstract: Recent literature stresses the importance of low productivity as a barrier to the international expansion of firms. But financial frictions or adverse employment conditions at home could matter as well. In this paper, we present new empirical evidence on the importance of these factors. We use a detailed micro-level dataset of German firms which simultaneously provides information on exports, financial frictions, and labor market conditions. Our paper has three main findings. First, in line with earlier literature, we find a positive impact of size and productivity on firms’ export activities. Second, financial constraints affect the entry into foreign market (extensive margin) more than the volume of exports (intensive margin). Third, labor market conditions have a mixed impact on export activities. The most consistent finding is that firms covered by collective bargaining agreements are less likely to be exporters and export less.

Keywords: multinational firms; exports; firm heterogeneity; productivity (search for similar items in EconPapers)
JEL-codes: F2 G2 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eff and nep-int
Date: 2008-11-30

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Persistent link: http://EconPapers.repec.org/RePEc:csl:devewp:268

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