Exports and Productivity Comparable Evidence for 14 Countries
78 Pages Posted: 3 Dec 2007
Date Written: December 2007
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 are controlled for, and these exporter productivity premia tend to increase with the share of exports in total sales; there is strong evidence in favor of self-selection of more productive firms into export markets, but nearly no evidence in favor 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 that countries that are more open and have more effective government report higher productivity premia. However, the level of development per se does not appear to be an explanation for the observed cross-country differences.
Keywords: Exports, productivity, micro data, international comparison
JEL Classification: F14, D21
Suggested Citation: Suggested Citation