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Robust estimates of exporter productivity premia in German business services enterprises

Alexander Vogel and Joachim Wagner ()

No 207, Working Paper Series in Economics from University of Lüneburg, Institute of Economics

Abstract: A large and growing number of micro-econometric studies show that exporting firms are more productive than firms that sell their products on the home market only. This so-called exporter productivity premium qualifies as a stylized fact. Only recently researchers started to look at the role of extreme observations, or outliers, in shaping these findings. These studies use micro-econometric methods that are robust against outliers to show that very small shares of firms with extreme values drive the result. The large exporter productivity premium found for samples of firms including outliers are dramatically smaller in samples without these extreme observations. Evidence on this, however, is limited so far to firms from manufacturing industries. This note adds comparable evidence for firms from the business services industries. We find that the estimated exporter productivity premium is statistically significant and relevant from an economic point of view when a standard fixed effects estimator is used to control for unobserved firm characteristics, but that it drops to zero when a robust estimator is applied.

Keywords: Exporter productivity premium; services firms; robust estimation; panel data (search for similar items in EconPapers)
JEL-codes: F14 C23 C81 C87 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eff, nep-int and nep-sbm
Date: 2011-07
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16) Track citations by RSS feed

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