Review of World Economics

, Volume 144, Issue 4, pp 596–635 | Cite as

Understanding Cross-Country Differences in Exporter Premia: Comparable Evidence for 14 Countries

  • International Study Group on Exports and Productivity (ISGEP)
Article

Abstract

We use comparable micro level panel data for 14 countries and a set of identically specified empirical models to investigate the relationship between exports and productivity. Our overall results are in line with the big picture that is by now familiar from the literature: exporters are more productive than non-exporters when observed and unobserved heterogeneity is controlled for, and these exporter productivity premia tend to increase with the share of exports in total sales; there is evidence in favour of self-selection of more productive firms into export markets, but nearly no evidence in favour of the learning-by-exporting hypothesis. We document that the exporter premia differ considerably across countries in identically specified empirical models. In a meta-analysis of our results we find, consistent with theoretical predictions, that productivity premia are larger in countries with lower export participation rates, with more restrictive trade policies, lower per capita GDP, less effective government and worse regulatory quality, and in countries exporting to relatively more distant markets.

Keywords

Exports productivity micro data international comparison 

References

  1. 1.
    Andersson, M. (2007). Entry Costs and Adjustments on the Extensive Margin – An Analysis of How Familiarity Breeds Exports. CESIS Working Paper. Royal Institute of Technology, Stockholm.Google Scholar
  2. 2.
    Andersson, M., S. Johansson, and H. Lööf (2008). Firm Performance and International Trade: Firm Level Evidence from a Small Open Economy. Review of World Economics/Weltwirtschaftliches Archiv 144 (4): 774–801.Google Scholar
  3. 3.
    Bartelsman, E. J., and M. Doms (2000). Understanding Productivity: Lessons from Longitudinal Data. Journal of Economic Literature XXXVIII (3): 569–594.Google Scholar
  4. 4.
    Bernard, A. B., and J. B. Jensen (1995). Exporters, Jobs, and Wages in U.S. Manufacturing: 1976–1987. Brookings Papers on Economic Activity: Microeconomics (1): 67–119.Google Scholar
  5. 5.
    Bernard, A. B., and J. B. Jensen (1999). Exceptional Exporter Performance: Cause, Effect, or Both? Journal of International Economics 47 (1): 1–25.Google Scholar
  6. 6.
    Bernard, A. B., and J. B. Jensen (2004a). Exporting and Productivity in the USA. Oxford Review of Economic Policy 20 (3): 343–357.Google Scholar
  7. 7.
    Bernard, A. B., and J. B. Jensen (2004b). Why Some Firms Export. The Review of Economics and Statistics 86 (2): 561–569.Google Scholar
  8. 8.
    Bernard, A. B., J. B. Jensen, S. J. Redding, and P. K. Schott (2007). Firms in International Trade. Journal of Economic Perspectives 21 (3): 105–130.Google Scholar
  9. 9.
    Bernard, A. B., and J. Wagner (1997). Exports and Success in German Manufacturing. Weltwirtschaftliches Archiv/Review of World Economics 133 (1): 134–157.Google Scholar
  10. 10.
    Damijan, J. P., S. Polanec, and J. Prasnikar (2004). Self-Selection, Export Market Heterogeneity and Productivity Improvements: Firm Level Evidence from Slovenia. LICOS Discussion Paper 148. Katholieke Universiteit Leuven.Google Scholar
  11. 11.
    Damijan, J. P., and C. Kostevc (2006). Learning-by-Exporting: Continuous Productivity Improvements or Capacity Utilization Effects? Evidence from Slovenian Firms. Review of World Economics/Weltwirtschaftliches Archiv 142 (3): 599–614.Google Scholar
  12. 12.
    De Loecker, J. (2007). Do Exports Generate Higher Productivity? Evidence from Slovenia. Journal of International Economics 73 (1): 69–98.Google Scholar
  13. 13.
    Foster, L., J. Haltiwanger, and C. Syverson (2005). Reallocation, Firm Turnover, and Efficiency: Selection on Productivity or Profitability? IZA Discussion Paper 1705. Institute for the Study of Labour, Bonn.Google Scholar
  14. 14.
    Görg, H., and E. Strobl (2001). Multinational Companies and Productivity Spillovers: A Meta-Analysis. Economic Journal 111 (November): F723–F739.Google Scholar
  15. 15.
    Greenaway, D., and R. Kneller (2007). Firm Heterogeneity, Exporting and Foreign Direct Investment: A Survey. Economic Journal 117 (February): F134–F161.Google Scholar
  16. 16.
    Hallward-Driemeier, M., G. Iarossi, and K. L. Sokoloff (2002). Exports and Manufacturing Productivity in East Asia. A Comparative Analysis with Firm-Level Data. NBER Working Paper 8894. National Bureau of Economic Research, Cambridge, Mass.Google Scholar
  17. 17.
    Helpman, E. (2006). Trade, FDI, and the Organisation of Firms. Journal of Economic Literature XLIV (3): 589–630.Google Scholar
  18. 18.
    ISGEP (International Study Group on Exports and Productivity) (2007). Exports and Productivity – Comparable Evidence for 14 Countries. Working Paper Series in Economics 65. University of Lüneburg.Google Scholar
  19. 19.
    Isgut, A., and A. Fernandes (2007). Learning-by-Exporting Effects: Are They for Real? MPRA Paper 3121. University Library of Munich.Google Scholar
  20. 20.
    Kaufmann, D., A. Kraay, and M. Mastruzzi (2007). Governance Matters V: Governance Indicators for 1996–2006. World Bank Policy Research Working Paper 4280. The World Bank, Washington, D.C.Google Scholar
  21. 21.
    Lileeva A., and D. Trefler (2007). Improved Access to Foreign Markets Raises Plant-Level Productivity ... for Some Plants. NBER Working Paper 13297. National Bureau of Economic Research, Cambridge, Mass.Google Scholar
  22. 22.
    López, R. A. (2005). Trade and Growth: Reconciling the Macroeconomic and Microeconomic Evidence. Journal of Economic Surveys 19 (4): 623–648.Google Scholar
  23. 23.
    Má nez, J. A., M. E. Rochina-Barrachina, and J. A. Sanchis (2008). Sunk Costs Hysteresis in Spanish Manufacturing Exports. Review of World Economics/Weltwirtschaftliches Archiv 144 (2): 272–294.Google Scholar
  24. 24.
    Mayer, T., and G. I. P. Ottaviano (2007). The Happy Few: The Internationalisation of European Firms. Brussels: Bruegel.Google Scholar
  25. 25.
    Melitz, M. J. (2003). The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity. Econometrica 71 (6): 1695–1725.Google Scholar
  26. 26.
    Melitz, M. J., and G. I. P. Ottaviano (2008). Market Size, Trade, and Productivity. Review of Economic Studies 75 (1): 295–316.Google Scholar
  27. 27.
    Muûls, M., and M. Pisu (2007). Imports and Exports at the Level of the Firm: Evidence from Belgium. CEP Discussion Paper 801. Centre for Economic Performance, London.Google Scholar
  28. 28.
    Oulton, N., and M. O’Mahony (1994). Productivity Growth – A Study of British Industry 1954–1986. The National Institute of Economic and Social Research Occasional Papers XLVI. Cambridge: Cambridge University Press.Google Scholar
  29. 29.
    Rauch, J. E., and J. Watson (2003). Starting Small in an Unfamiliar Environment. International Journal of Industrial Organization 21 (7): 1021–1042.Google Scholar
  30. 30.
    Serti, F., and C. Tomasi (2008). Self-Selection and Post-Entry Effects of Exports: Evidence from Italian Manufacturing Firms. Review of World Economics/Weltwirtschaftliches Archiv 144 (4): 660–694.Google Scholar
  31. 31.
    Van Biesebroeck, J. (2005). Exporting Raises Productivity in Sub-Saharan African Manufacturing Firms. Journal of International Economics 67 (2): 373–391.Google Scholar
  32. 32.
    Van Biesebroeck, J. (2008). The Sensitivity of Productivity Estimates: Revisiting Three Important Productivity Debates. Journal of Business and Economic Statistics 26 (3): 311–328.Google Scholar
  33. 33.
    Wagner, J. (2007). Exports and Productivity: A Survey of the Evidence from Firm-Level Data. The World Economy 30 (1): 60–82.Google Scholar

Copyright information

© Kiel Institute 2008

Authors and Affiliations

  • International Study Group on Exports and Productivity (ISGEP)
    • 1
  1. 1.Institute of EconomicsLeuphana University of LueneburgLüneburgGermany

Personalised recommendations