TY - UNPB

T1 - Productivity and the extensive margins of trade in German manufacturing firms: Evidence from a non-parametric test

AU - Wagner, Joachim

PY - 2012

Y1 - 2012

N2 - This paper contributes to the literature by comparing the productivity distribution for firms with various numbers of goods traded and various numbers of countries traded with from Germany, one of the leading actors on the world market for goods. It applies a non-parametric test for first-order stochastic dominance of one productivity distribution over another. We find that the larger the number of goods exported or imported, and the larger the number of countries exported to or imported from, the higher is the productivity of the firms – not only on average, but over the whole productivity distribution. This is in line with implications of recent theoretical models of multi-product multi-country trading firms.

AB - This paper contributes to the literature by comparing the productivity distribution for firms with various numbers of goods traded and various numbers of countries traded with from Germany, one of the leading actors on the world market for goods. It applies a non-parametric test for first-order stochastic dominance of one productivity distribution over another. We find that the larger the number of goods exported or imported, and the larger the number of countries exported to or imported from, the higher is the productivity of the firms – not only on average, but over the whole productivity distribution. This is in line with implications of recent theoretical models of multi-product multi-country trading firms.

KW - Economics

KW - exports

KW - imports

KW - number of goods

KW - number of countries

KW - Germany

M3 - Working papers

T3 - Working Paper Series in Economics

BT - Productivity and the extensive margins of trade in German manufacturing firms: Evidence from a non-parametric test

PB - Institut für Volkswirtschaftslehre der Universität Lüneburg

CY - Lüneburg

ER -