Exports and Success in German Manufacturing
MIT Dept. of Economics Working Paper No. 96-10
Posted: 22 Jan 1999
Date Written: April 1996
While Germany has a very open, export-oriented manufacturing sector, to date there has been little or no research on the role of exporting in German firm performance. This paper documents the significant differences between exporters and non-exporters and attempts to identify the sources of these disparities. Exporters are much larger, more capital-intensive, and more productive than non-exporters. However, the bulk of the evidence suggests that these performance characteristics predate entry into the export market. We find no positive effects on employment, wage or productivity growth after entry. Our results provide confirming evidence that success leads to exporting, rather than the reverse.
JEL Classification: F10, D21, L60
Suggested Citation: Suggested Citation