Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/100179
Authors: 
Murphy, Gavin
Siedschlag, Iulia
Year of Publication: 
2012
Series/Report no.: 
Working Paper, The Economic and Social Research Institute (ESRI), Dublin 439
Abstract: 
We examine the effect of changes in international competitiveness on labour productivity growth through three channels: (i) export, (ii) import, and (iii) import competition. Using micro data from the Irish manufacturing over the period 1995-2002, we account for firms' heterogeneity in their exposure to international competitive pressure. Our econometric estimates indicate that a real exchange rate appreciation had a negative effect on labour productivity growth once a firm's export exposure was greater than 14 per cent. When a firm's import exposure exceeded 33 per cent, a real exchange rate appreciation had a positive effect on labour productivity. An increase in import competition due to a real exchange rate appreciation had no effect on a firm's labour productivity growth.
Subjects: 
International competitiveness
Productivity
Firm heterogeneity
JEL: 
F12
F41
F43
Document Type: 
Working Paper

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