Exports, R&D and Productivity in German Business Services Firms: A test of the Bustos-model
Alexander Vogel and
Joachim Wagner ()
No 247, Working Paper Series in Economics from University of Lüneburg, Institute of Economics
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: Exports; R&D; productivity; business services firms; Germany (search for similar items in EconPapers)
JEL-codes: F14 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eff, nep-eur, nep-ino, nep-int and nep-sbm
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Persistent link: https://EconPapers.repec.org/RePEc:lue:wpaper:247
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