(1) Institut für Volkswirtschaftslehre, University of Lüneburg, D-21332 Lüneburg, Germany
Abstract:
This paper starts from the stylized fact that firm size and exporting tends to be positively related. Using large sets of
establishment panel data for three different industries from official statistics, evidence is presented that the familiar
picture of an export/sales ratio that increases (at a decreasing rate) with firm size vanishes if unobserved firm heterogeneity
is controlled for in a fixed-effects fractional logit regression model. This finding is well in line with the fact that many
small firms are “hidden export champions.” JEL no. F10, D21, L60