Low-productive exporters are high-quality exporters: Evidence from Germany
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In: Economics Bulletin, Vol. 34, No. 2, 2014, p. 745-756.
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RIS
TY - JOUR
T1 - Low-productive exporters are high-quality exporters
T2 - Evidence from Germany
AU - Wagner, Joachim
PY - 2014
Y1 - 2014
N2 - A stylized fact from the emerging literature on the micro-econometrics of international trade and a central implication of the heterogeneous firm models from the new new trade theory is that exporters are more productive than non-exporters. However, many firms from the lower end of the productivity distribution are exporters. Germany is a case in point. A recent study reports that these low-productivity exporters are not marginal exporters defined according to the share of exports in total sales, or export participation over time, or the number of goods exported, or the number of countries exported to. This paper documents that low-productive exporters are competitive because they export high-quality goods. The quality of exports is much higher among exporters from the lower end of the productivity distribution than among highly productive exporters.
AB - A stylized fact from the emerging literature on the micro-econometrics of international trade and a central implication of the heterogeneous firm models from the new new trade theory is that exporters are more productive than non-exporters. However, many firms from the lower end of the productivity distribution are exporters. Germany is a case in point. A recent study reports that these low-productivity exporters are not marginal exporters defined according to the share of exports in total sales, or export participation over time, or the number of goods exported, or the number of countries exported to. This paper documents that low-productive exporters are competitive because they export high-quality goods. The quality of exports is much higher among exporters from the lower end of the productivity distribution than among highly productive exporters.
KW - Economics
M3 - Journal articles
VL - 34
SP - 745
EP - 756
JO - Economics Bulletin
JF - Economics Bulletin
SN - 1545-2921
IS - 2
ER -