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Trade and technology: new evidence on the productivity sorting of firms

Irene Bertschek, Jan Hogrefe () and Fabienne Rasel

Review of World Economics (Weltwirtschaftliches Archiv), 2015, vol. 151, issue 1, 53-72

Abstract: Recent advances in trade theory suggest novel gains from trade liberalisation through technology adoption by expanding exporting firms. These theories rely on strict assumptions regarding the productivity sorting of firms with different technology use. In this paper, we test the sorting of German firms using data on actually implemented technologies. Our analysis distinguishes between manufacturing and service industries. In case of the former, we confirm the sorting pattern of the most productive firms being high-tech exporters, followed by low-tech exporters and then domestic low-tech firms. For services, the evidence is mixed and potentially depends on the tradability of the considered services. Copyright Kiel Institute 2015

Keywords: Exports; Productivity; Sorting; Information technology; Firm-level data; F14; F23; F61 (search for similar items in EconPapers)
Date: 2015
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Working Paper: Trade and technology: New evidence on the productivity sorting of firms (2013) Downloads
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DOI: 10.1007/s10290-014-0202-9

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