Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/24012 
Year of Publication: 
2004
Series/Report no.: 
ZEW Discussion Papers No. 04-12
Publisher: 
Zentrum für Europäische Wirtschaftsforschung (ZEW), Mannheim
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.
Subjects: 
Total Factor Productivity
Exports
Export-led growth
Heterogeneous firms
JEL: 
F10
L60
F14
D21
F13
Document Type: 
Working Paper

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