Exports, R&D and Productivity in German Business Services Firms: A Test of the Bustos-model

Alexander Vogel and Joachim Wagner ()

Chapter 16 in Microeconometric Studies of Firms' Imports and Exports:Advanced Methods of Analysis and Evidence from German Enterprises, 2021, pp 287-293 from World Scientific Publishing Co. Pte. Ltd.

Abstract: This paper uses newly available data for German business services firms to test a hypothesis derived by Bustos (AER 2011) in a model that explains the decision of heterogeneous firms to export and to engage in R&D. Using a non-parametric test for first order stochastic dominance it is shown that, in line with this hypothesis, the productivity distribution of firms with exports and R&D dominates that of exporters without R&D, which in turn dominates that of firms that neither export nor engage in R&D. These results are in line with findings for firms from manufacturing industries. The model, therefore, seems to be useful to guide empirical work on the relation between exports, R&D and productivity for services firms, too.

Keywords: International Trade; Exports; Imports; Microeconometrics; Firm Level Data; Panel Data; Transaction Data; Cross-Country Studies; Germany; Productivity; Trade in Services (search for similar items in EconPapers)
JEL-codes: F02 F1 F13 F23 M16 (search for similar items in EconPapers)
Date: 2021
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Working Paper: Exports, R&D and Productivity in German Business Services Firms: A test of the Bustos-model (2012)
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