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Export Entry, Export Exit, and Productivity in German Manufacturing Industries

Joachim Wagner ()

No 2007-062, Jena Economic Research Papers from Friedrich-Schiller-University Jena

Abstract: This paper contributes to the flourishing literature on exports and productivity by using a unique newly available panel of exporting establishments from the manufacturing sector of Germany from 1995 to 2004 to test three hypotheses derived from a theoretical model by Hopenhayn (Econometrica 1992): (H1) Firms that stop exporting in year t were in t-1 less productive than firms that continue to export in t. (H2) Firms that start to export in year t are less productive than firms that export both in year t-1 and in year t. (H3) Firms from a cohort of export starters that still export in the last year of the panel were more productive in the start year than firms from the same cohort that stopped to export in between. While results for West Germany support all three hypotheses, this is only the case for (H1) and (H2) in East Germany.

Keywords: export entry; export exit; productivity (search for similar items in EconPapers)
JEL-codes: F14 L60 (search for similar items in EconPapers)
Date: 2007-09-12
New Economics Papers: this item is included in nep-eff, nep-ent, nep-int and nep-tid
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Journal Article: Export Entry, Export Exit and Productivity in German Manufacturing Industries (2008) Downloads
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