Productivity and the extensive margins of trade in German manufacturing firms: Evidence from a non-parametric test
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Lüneburg: Institut für Volkswirtschaftslehre der Universität Lüneburg, 2012. (Working Paper Series in Economics; No. 250).
Research output: Working paper › Working papers
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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 -