Exports and productivity growth-first evidence from a continuous treatment approach

Research output: Contributions to collected editions/worksChapterpeer-review

Authors

A recent survey of 54 micro-econometric studies reveals that exporting firms are more productive than non-exporters. On the other hand, 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.

Original languageEnglish
Title of host publicationMicroeconometric Studies Of Firms Imports And Exports : Advanced Methods Of Analysis And Evidence From German Enterprises
EditorsJoachim Wagner
Number of pages30
PublisherWorld Scientific Publishing Co.
Publication date25.02.2021
Pages57-86
ISBN (print)9781786349682
ISBN (electronic)9781786349705
DOIs
Publication statusPublished - 25.02.2021

    Research areas

  • Continuous treatment, Dose-response function, Export-sales ratio, Labour productivity
  • Economics