Export Behavior and Firm Productivity in German Manufacturing: A Firm-level Analysis

Jens Arnold () and Katrin Hussinger

No 04-12, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: This paper analyses the relationship between firm productivity and export behavior in German manufacturing firms. We examine whether productivity increases the probability of exporting, and assert that there is a causal relationship from high productivity to entering foreign markets, as postulated by the recent literature on international trade with heterogeneous firms. In estimating productivity, we control for a possible simultaneity bias by using semiparametric estimation techniques. Moreover, we apply a matching technique in order to analyze whether the presence in international markets enabled firms to achieve further productivity improvements, without finding significant evidence for this. We conclude that high-productivity firms self-select themselves into export markets, while exporting itself does not play a significant role for productivity improvements.

Keywords: Total Factor Productivity; Exports; Export-led growth; Heterogeneous firms (search for similar items in EconPapers)
JEL-codes: D21 F10 F13 F14 L60 (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (45)

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https://www.econstor.eu/bitstream/10419/24012/1/dp0412.pdf (application/pdf)

Related works:
Journal Article: Export Behavior and Firm Productivity in German Manufacturing: A Firm-Level Analysis (2005)
Working Paper: Export Behavior and Firm Productivity in German Manufacturing: A firm-level analysis (2004)
Working Paper: Export Behavior and Firm productivity in German Manufacturing. A Firm-Level Analysis (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:1613

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