Review of World Economics

, Volume 149, Issue 1, pp 55–84 | Cite as

Firms’ exporting and importing activities: is there a two-way relationship?

Original Paper

Abstract

The literature on firm heterogeneity and trade has highlighted that most trading firms tend to engage in both importing and exporting activities. This paper provides some evidence that helps understanding to what extent this is the result of a two-way relationship. Using firm-level data for a group of 27 Eastern European and Central Asian countries from the World Bank Business Environment and Enterprise Performance Survey (BEEPS) over the period 2002–2008, we estimate a bivariate probit model of exporting and importing. After controlling for size (and other firm-level characteristics) we find that firms’ exporting activity does not increase the probability of importing, while the latter has a positive effect on foreign sales. This effect is mainly channeled through an increase in firm productivity and product innovation.

Keywords

Export Import Firm heterogeneity Eastern European and Central Asian countries 

JEL Classification

F14 F21 F23 

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Copyright information

© Kiel Institute 2012

Authors and Affiliations

  • David Aristei
    • 3
  • Davide Castellani
    • 1
  • Chiara Franco
    • 2
  1. 1.Department of Economics, Centro Studi Luca d’Agliano and IFHUniversity of PerugiaPerugiaItaly
  2. 2.Department of EconomicsUniversity of BolognaBolognaItaly
  3. 3.Department of EconomicsUniversity of PerugiaPerugiaItaly

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