TY - CHAP

T1 - A Note on the firm size-export relationship

AU - Wagner, Joachim

PY - 2021/3/16

Y1 - 2021/3/16

N2 - The positive relationship between firm size and direct exports is often considered as a stylized fact. Numerous econometric investigations back theoretical considerations by showing that a ceteris paribus positive relationship between firm size and direct export activities exists. This note contributes to the literature by closely looking at an econometric modelling issues that has largely been neglected hitherto. Various approaches used in the literature to model the exports/sales ratio, which is a percentage variable with usually many observations at the lower limit, are discussed. It is argued that all these methods are seriously flawed, and an alternative approach is suggested that is applied using data from a large comprehensive recent survey of German manufacturing establishments. Furthermore, the relation between firm size and exports is examined in four selected industries to test whether the importance of economies of scale and transaction cost efficiencies vary considerably between industries.

AB - The positive relationship between firm size and direct exports is often considered as a stylized fact. Numerous econometric investigations back theoretical considerations by showing that a ceteris paribus positive relationship between firm size and direct export activities exists. This note contributes to the literature by closely looking at an econometric modelling issues that has largely been neglected hitherto. Various approaches used in the literature to model the exports/sales ratio, which is a percentage variable with usually many observations at the lower limit, are discussed. It is argued that all these methods are seriously flawed, and an alternative approach is suggested that is applied using data from a large comprehensive recent survey of German manufacturing establishments. Furthermore, the relation between firm size and exports is examined in four selected industries to test whether the importance of economies of scale and transaction cost efficiencies vary considerably between industries.

KW - Economics

UR - http://www.scopus.com/inward/record.url?scp=85109659321&partnerID=8YFLogxK

UR - https://www.mendeley.com/catalogue/6f8c2539-8cf5-3d4b-98b8-307664ed25b3/

U2 - 10.1142/9781786349699_0003

DO - 10.1142/9781786349699_0003

M3 - Chapter

AN - SCOPUS:85109659321

SN - 9781786349682

T3 - Microeconometric Studies Of Firms Imports And Exports: Advanced Methods Of Analysis And Evidence From German Enterprises

SP - 25

EP - 38

BT - Microeconometric Studies Of Firms Imports And Exports

A2 - Wagner, Joachim

PB - World Scientific Publishing Co.

ER -