Productivity and Size of the Export Market: Evidence for West and East German Plants, 2004

14 Pages Posted: 29 Mar 2007

See all articles by Joachim Wagner

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: March 2007

Abstract

Using unique recently released nationally representative high-quality data at the plant level, this paper presents the first comprehensive evidence on the relationship between productivity and size of the export market for Germany, a leading actor on the world market for manufactured goods. It documents that firms that export to countries inside the euro-zone are more productive than firms that sell their products in Germany only, but less productive than firms that export to countries outside the euro-zone, too. This is in line with the hypothesis that export markets outside the euro-zone have higher entry costs that can only by paid by more productive firms.

Keywords: exports, productivity, micro data, Germany

JEL Classification: F14, D21

Suggested Citation

Wagner, Joachim, Productivity and Size of the Export Market: Evidence for West and East German Plants, 2004 (March 2007). IZA Discussion Paper No. 2661, Jena Economic Research Paper No. 2007-028, Available at SSRN: https://ssrn.com/abstract=976876

Joachim Wagner (Contact Author)

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