Exports and Success in German Manufacturing

MIT Dept. of Economics Working Paper No. 96-10

Posted: 22 Jan 1999

See all articles by Andrew B. Bernard

Andrew B. Bernard

Dartmouth College - Tuck School of Business; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Joachim Wagner

University of Lueneburg - Institute of Economics; Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Economics; IZA Institute of Labor Economics

Date Written: April 1996

Abstract

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

Bernard, Andrew B. and Wagner, Joachim, Exports and Success in German Manufacturing (April 1996). MIT Dept. of Economics Working Paper No. 96-10, Available at SSRN: https://ssrn.com/abstract=139528

Andrew B. Bernard (Contact Author)

Dartmouth College - Tuck School of Business ( email )

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Joachim Wagner

University of Lueneburg - Institute of Economics ( email )

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IZA Institute of Labor Economics

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