Self-Selection into Export Markets by Business Services Firms: Evidence from France, Germany and the United Kingdom

34 Pages Posted: 30 Aug 2010

See all articles by Yama Temouri

Yama Temouri

Aston University

Alexander Vogel

Leuphana University of Lueneburg

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

Abstract

This study reports results from an empirical investigation of business services sector firms that (start to) export, comparing exporters to firms that serve the national market only. We estimate identically specified empirical models using comparable enterprise level data from France, Germany, and the United Kingdom. Exporters are more productive and pay higher wages on average in all three countries. Results for profitability differ across borders – profitability of exporters is significantly smaller in Germany, significantly larger in France, and does not differ significantly in the UK. The results for wages and productivity hold in the years before the export start, which indicates self-selection into exporting of more productive services firms that pay higher wages. The surprising finding of self-selection of less profitable German business services firms into exporting does not show up among firms from France and the UK where no statistically significant relationship between profitability and starting to export is found.

Keywords: business services firms, exports, self-selection, France, Germany, UK

JEL Classification: F14, D21, L80

Suggested Citation

Temouri, Yama and Vogel, Alexander and Wagner, Joachim, Self-Selection into Export Markets by Business Services Firms: Evidence from France, Germany and the United Kingdom. IZA Discussion Paper No. 5147, Available at SSRN: https://ssrn.com/abstract=1667771

Yama Temouri (Contact Author)

Aston University ( email )

Aston Triangle
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Alexander Vogel

Leuphana University of Lueneburg ( email )

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Germany

Joachim Wagner

University of Lueneburg - Institute of Economics ( email )

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IZA Institute of Labor Economics

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