Productivity and Size of the Export Market: Evidence for West and East German Plants, 2004
14 Pages Posted: 29 Mar 2007
Date Written: March 2007
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: Suggested Citation