Does Exporting Increase Productivity? A Microeconometric Analysis of Matched Firms |
| |
Authors: | Sourafel Girma avid Greenaway Richard Kneller |
| |
Institution: | University of Leicester, Leicester LE1 7RH, UK. Tel: +44 (0)116 2522854;Fax: +44 (0)116 2522908;E-mail: .; GEP, University of Nottingham, Nottingham NG7 2RD, UK. Tel: +44 (0)115 9515469;Fax: +44 (0)115 9515552;E-mail: .; GEP, University of Nottingham, Nottingham NG7 2RD, UK. Tel: +44 (0)115 9515469;Fax: +44 (0)115 9515552. |
| |
Abstract: | Exporting involves sunk costs, so some firms export whilst others do not. This proposition derives from a number of models of firm behavior and has been exposed to microeconometric analysis. Evidence from the latter suggests that exporting firms are generally more productive than nonexporters. They self‐select, in that they are more productive before they enter export markets, but the evidence suggests that entry does not make them any more productive. This paper investigates exporting and firm performance for a large panel of UK manufacturing firms, applying matching techniques. The authors find that exporters are more productive and they do self‐select. In contrast to other evidence, however, exporting further increases firm productivity. |
| |
Keywords: | |
|
|