Exports and Firm Productivity. The effect of US steel safeguards

Victoria Purice ()

No 19, Bruges European Economic Research Papers from European Economic Studies Department, College of Europe

Abstract: This paper investigates possible negative effects of the 2002 US steel safeguards on productivity of Eurozone steel companies. The analysis is based on an extensive literature which predicts that exporting firms not only are bigger and more productive, but also that exporting itself has positive effects, improving efficiency and leading to better utilization of firm resources. The paper investigates a large sample of EU-13 steel producing firms, in the 1998 - 2005 period. Using three methods of Total Factor Productivity (TFP) estimation among which the Olley Pakes semiparametric estimator, we first calculate the productivity levels of companies, and then check for any unusual fluctuation in this performance variable. We find that in 2002 there has been a significant drop in TFP. The paper is an invitation for further research in this field, given the possible important effects of safeguard measures on exporters.

Keywords: exports; learning-by-exporting; firm heterogeneity; productivity; firm-level data (search for similar items in EconPapers)
JEL-codes: D24 F10 F23 L25 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2011-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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