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

Jens Matthias Arnold () and Katrin Hussinger ()

International Trade from EconWPA

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.

Keywords: Total Factor Productivity; Exports; Export-led growth; Heterogeneous firms. (search for similar items in EconPapers)
JEL-codes: F10 F13 F14 D21 L60 (search for similar items in EconPapers)
Date: 2004-03-23
Note: Type of Document - pdf; pages: 32.
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http://129.3.20.41/eps/it/papers/0403/0403007.pdf (application/pdf)

Related works:
Working Paper: Export Behavior and Firm Productivity in German Manufacturing: A Firm-level Analysis (2004)
Journal Article: Export Behavior and Firm Productivity in German Manufacturing: A Firm-Level Analysis (2005)
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