Firms' International Status and Heterogeneity in Performance: Evidence from Italy

31 Pages Posted: 1 Feb 2008

See all articles by Lorenzo Casaburi

Lorenzo Casaburi

University of Zurich; Centre for Economic Policy Research (CEPR)

Valeria Gattai

Bocconi University - ISESAO; Università degli Studi di Milano-Bicocca - Center for Interdisciplinary Studies in Economics, Psychology & Social Sciences (CISEPS)

G. Alfredo Minerva

University of Bologna - Department of Economics

Date Written: January 2008

Abstract

This paper revisits the empirical evidence about the link between firms' performance and their international status, based on a large sample of Italian enterprises. To this purpose, we merged two waves of the Capitalia survey (1998-2000, and 2001-2003) retrieving firm level data for roughly 7,000 units. Three results stand out from our empirical exercise. First, firms that engage in the foreign production of final goods, in addition to export activities, are more productive than firms that only export abroad. Second, firms that engage in final goods off-shoring are more productive than firms that engage in inputs off-shoring. Third, in terms of the productivity dynamics over the period 1998-2003, exporters' performance in Italy was not any better than the non-exporters' one. Our results support the view that the better performance (in static terms) of globally engaged firms is chiefly due to the selection caused by the fixed costs associated to international operations.

Keywords: Export, Heterogeneous Firms, Italy, Off-shoring, Productivity

JEL Classification: F10, F20, L10, L20, L60

Suggested Citation

Casaburi, Lorenzo and Gattai, Valeria and Minerva, Gaetano Alfredo, Firms' International Status and Heterogeneity in Performance: Evidence from Italy (January 2008). FEEM Working Paper No. 3.2008, Available at SSRN: https://ssrn.com/abstract=1086317 or http://dx.doi.org/10.2139/ssrn.1086317

Lorenzo Casaburi

University of Zurich ( email )

Rämistrasse 71
Zürich, CH-8006
Switzerland

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Valeria Gattai

Bocconi University - ISESAO ( email )

Via Sarfatti 25
20136 Milan, MI 20136
Italy

Università degli Studi di Milano-Bicocca - Center for Interdisciplinary Studies in Economics, Psychology & Social Sciences (CISEPS)

Piazza dell'Ateneo Nuovo, 1
Milano, 20126
Italy

Gaetano Alfredo Minerva (Contact Author)

University of Bologna - Department of Economics ( email )

Strada Maggiore 45
Bologna, 40125
Italy

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