Export Status and Productivity Performance: Evidence from Matched Italian Firms
Università degli Studi di Bari “Aldo Moro” - Facolta' di Economia
Università degli Studi di Bari “Aldo Moro”
affiliation not provided to SSRN
May 15, 2011
SERIES Working Paper No. 27
This paper explores the two alternative hypotheses of "self-selection" and "learning by exporting" across different Italian manufacturing firms. Using matched sampling techniques that control for selection bias, we estimate whether new export-oriented firms are more efficient than domestic market-oriented firms are, by using three representative Surveys of Italian manufacturing firms covering consecutive triennial periods (1995-2003). By matching new exporting firms and non-exporters, our findings indicate that export entrants improve their productivity in the first period after entry although this effect vanishes in the subsequent period. This occurs for both total factor productivity (TFP) and labor productivity growth rates. Our evidence also suggests that new exporters earn higher profits than their domestic counterparts do.
Number of Pages in PDF File: 48
Keywords: international trade, export-led growth, productivity, matched techniques
JEL Classification: F11, F14, O12, C22working papers series
Date posted: June 2, 2011 ; Last revised: June 7, 2011
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