The Exporter Productivity Premium Along the Productivity Distribution: Evidence from Unconditional Quantile Regression with Firm Fixed Effects

28 Pages Posted: 3 Apr 2011

See all articles by David Powell

David Powell

RAND Corporation

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: February 2, 2011

Abstract

One of the stylized facts from the literature on international activities of heterogeneous firms is the existence of a positive exporter productivity premium - on average, exporting firms are more productive than firms that sell on the national market only. In this paper, the authors look at the productivity distribution of both exporting and non-exporting firms in German manufacturing industries. They recognize that it is potentially important to condition on firm fixed effects for estimation of this exporter premium. They apply a new unconditional quantile estimation technique for panel data to condition on firm fixed effects while estimating the exporter premium throughout the entire productivity distribution. They find that the premium is positive for all productivity levels, but highest at the lowest quantiles. These results support theoretical models which suggest that there is a division in productivity between exporters and non-exporters. Mean regression is incapable of detecting this dimension of firm heterogeneity.

Keywords: exporter productivity premium, quantile regression, fixed effects, unconditional quantile treatment effects

JEL Classification: F14, C21, C23

Suggested Citation

Powell, David and Wagner, Joachim, The Exporter Productivity Premium Along the Productivity Distribution: Evidence from Unconditional Quantile Regression with Firm Fixed Effects (February 2, 2011). RAND Working Paper Series WR-837, Available at SSRN: https://ssrn.com/abstract=1799562 or http://dx.doi.org/10.2139/ssrn.1799562

David Powell (Contact Author)

RAND Corporation ( email )

1776 Main Street
P.O. Box 2138
Santa Monica, CA 90407-2138
United States

Joachim Wagner

University of Lueneburg - Institute of Economics ( email )

PO Box 2440
D-21314 Luneburg
Germany
+49 4131 677 2330 (Phone)
+49 4131 677 2026 (Fax)

HOME PAGE: http://www.uni-lueneburg.de/wifo

Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Economics ( email )

Kahlaische Strasse 10
D-07745 Jena, 07745
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
112
Abstract Views
707
rank
295,559
PlumX Metrics