Exports and Productivity Growth: First Evidence from a Continuous Treatment Approach

Publikation: Beiträge in ZeitschriftenZeitschriftenaufsätzeForschungbegutachtet

Authors

A recent survey of 54 micro-econometric studies reveals that exporting firms are more productive than non-exporters. However, previous empirical studies show that exporting does not necessarily improve productivity. One possible reason for this result is that most previous studies are restricted to analysing the relationship between a firm's export status and the growth of its labour productivity, using the firms' export status as a binary treatment variable and comparing the performance of exporting and non-exporting firms. In this paper, we apply the newly developed generalised propensity score (GPS) methodology that allows for continuous treatment, that is, different levels of the firms' export activities. Using the GPS method and a large panel data set for German manufacturing firms, we estimate the relationship between a firm's export-sales ratio and its labour productivity growth rate. We find that there is a causal effect of firms' export activities on labour productivity growth. However, exporting improves labour productivity growth only within a sub-interval of the range of firms' export-sales ratios. © 2008 Kiel Institute.
OriginalspracheEnglisch
ZeitschriftReview of World Economics
Jahrgang144
Ausgabenummer4
Seiten (von - bis)695-722
Anzahl der Seiten28
ISSN1610-2878
DOIs
PublikationsstatusErschienen - 12.2008

Bibliographische Notiz

Funding Information:
Remark: This paper is part of the project “Exports and Productivity in Lower Saxonian Manufacturing Firms” financially supported by the Ministry of Science and Culture of Lower Saxony. Special thanks go to the Statistical Office of Lower Saxony, and especially to Uwe Rode, for providing us the access to the confidential micro level data and running our Stata do-files. Earlier versions of the paper were presented at workshops on The Microeconometrics of International Firm Activities at Lueneburg University in September 2006, on Exports and Productivity – An International Comparison at the University of Nottingham in March 2007, on Regional and Mirco-Level Effects of Globalisation at the Institute for Applied Economic Research in Tübingen in July 2007, at the 34th EARIE Annual Conference in Valencia in September 2007, and at Christian-Albrechts-University Kiel in June 2007; comments from participants and an anonymous referee are gratefully acknowledged. Please address correspondence to Joachim Wagner, Leuphana University of Lueneburg, Institute of Economics, Campus 4.210, D-21332 Lüneburg, Germany; e-mail: wagner@leuphana.de

DOI

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