The exporter productivity premium along the productivity distribution: Evidence from quantile regression with nonadditive firm fixed effects
Research output: Contributions to collected editions/works › Chapter › peer-review
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Microeconometric Studies Of Firms Imports And Exports: Advanced Methods Of Analysis And Evidence From German Enterprises. ed. / Joachim Wagner. World Scientific Publishing Co., 2021. p. 121-149.
Research output: Contributions to collected editions/works › Chapter › peer-review
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TY - CHAP
T1 - The exporter productivity premium along the productivity distribution
T2 - Evidence from quantile regression with nonadditive firm fixed effects
AU - Powell, David
AU - Wagner, Joachim
PY - 2021/2/25
Y1 - 2021/2/25
N2 - A vast literature on the international activities of heterogeneous firms finds the existence of a positive exporter productivity premium. On average, exporting firms are more productive than firms that sell on the national market only. The Melitz [2003] model, however, has implications for not only mean differences but also differences in the distribution of productivity. Furthermore, exporting firms may be different from non-exporting firms for reasons that are not included in the Melitz model. We believe that conditioning on firm fixed effects and studying the distribution of productivity are both necessary for empirical tests of the Melitz model. This paper is the first to introduce such a method by employing a new quantile estimation technique for panel data introduced in Powell [2013]. We find that the premium is positive at all productivity levels, but highest at the lowest quantiles. These results support theoretical models which suggest that there is a division in productivity between exporters and non-exporters.
AB - A vast literature on the international activities of heterogeneous firms finds the existence of a positive exporter productivity premium. On average, exporting firms are more productive than firms that sell on the national market only. The Melitz [2003] model, however, has implications for not only mean differences but also differences in the distribution of productivity. Furthermore, exporting firms may be different from non-exporting firms for reasons that are not included in the Melitz model. We believe that conditioning on firm fixed effects and studying the distribution of productivity are both necessary for empirical tests of the Melitz model. This paper is the first to introduce such a method by employing a new quantile estimation technique for panel data introduced in Powell [2013]. We find that the premium is positive at all productivity levels, but highest at the lowest quantiles. These results support theoretical models which suggest that there is a division in productivity between exporters and non-exporters.
KW - Exporter productivity premium
KW - Panel data
KW - Quantile treatment effects
KW - Economics
UR - http://www.scopus.com/inward/record.url?scp=85109732488&partnerID=8YFLogxK
UR - https://www.mendeley.com/catalogue/2b44241c-e921-3ed3-97c8-d1d726c3cfea/
U2 - 10.1142/9781786349699_0009
DO - 10.1142/9781786349699_0009
M3 - Chapter
AN - SCOPUS:85109732488
SN - 9781786349682
SP - 121
EP - 149
BT - Microeconometric Studies Of Firms Imports And Exports
A2 - Wagner, Joachim
PB - World Scientific Publishing Co.
ER -