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Productivity and International Trade - firm-level evidence from a small open economy

Martin Andersson, Sara Johansson and Hans Lööf ()

No 99, Working Paper Series in Economics and Institutions of Innovation from Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies

Abstract: This paper presents a comprehensive description and analysis of the international trading activities of firms based on novel detailed Swedish data. As a small open economy with a limited domestic market, Sweden constitutes an interesting contrast to existing evidence. We show that much of the stylized facts from large countries (specifically the US) about firms’ participation in international trade also pertain to a small open economy. We provide robust evidence of selection operating from market to market which is consistent with that low productive firms are confined to markets with low productivity thresholds. We further show that selection also applies to number of products traded. Both export and import productivity premiums increase in number of markets and number of products traded, respectively. There is a substantial heterogeneity among exporters and importers in terms of the number of markets they trade with and in terms of the number of products they trade.

Keywords: international trade; exports; imports; firm heterogeneity; productivity; import premium; export premium (search for similar items in EconPapers)
JEL-codes: D21 D24 F14 F23 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2007-10-03
New Economics Papers: this item is included in nep-eff and nep-int
References: Add references at CitEc
Citations: View citations in EconPapers (17)

Published in Review of World Economics, 2008, pages 774-801.

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Journal Article: Productivity and International Trade: Firm Level Evidence from a Small Open Economy (2008) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:cesisp:0099

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