Does Exporting Lead to Better Performance? A Microeconometric Analysis of Matched Firms

University of Nottingham, GEP Working Paper No. 2002/09

30 Pages Posted: 20 Jun 2003

See all articles by David Greenaway

David Greenaway

University of Nottingham - School of Economics

Sourafel Girma

Nottingham University Business School

Richard Kneller

University of Nottingham

Date Written: June 2002

Abstract

Exporting involves sunk costs, so some firms export while others do not. This proposition derives from a number of models of firm behaviour and has been exposed to microeconometric analysis. Evidence from the latter suggests that exporting firms are generally more productive than non-exporters; they self-select in that they are more productive before they enter export markets; but entry does not make them any more productive. This paper investigates exporting and firm performance for a large panel of UK manufacturing firms applying, for the first time, matching techniques. We find that exporters are more productive and they do self-select. In contrast to other evidence, however, we also find that exporting further increases firm productivity.

Keywords: exports, matching, productivity, firm level

JEL Classification: F14, D2

Suggested Citation

Greenaway, David and Girma, Sourafel and Kneller, Richard, Does Exporting Lead to Better Performance? A Microeconometric Analysis of Matched Firms (June 2002). University of Nottingham, GEP Working Paper No. 2002/09. Available at SSRN: https://ssrn.com/abstract=410746 or http://dx.doi.org/10.2139/ssrn.410746

David Greenaway (Contact Author)

University of Nottingham - School of Economics ( email )

University Park
Nottingham, NG7 2RD
United Kingdom
+44 115 951 5469 (Phone)
+44 115 951 4159 (Fax)

Sourafel Girma

Nottingham University Business School ( email )

Jubilee Campus
Nottingham, NG8 1BB
United Kingdom
+44 0 115 8466656 (Phone)

HOME PAGE: http://www.nottingham.ac.uk/~lizsmg/

Richard Kneller

University of Nottingham ( email )

University Park
Nottingham, NG8 1BB
United Kingdom

Register to save articles to
your library

Register

Paper statistics

Downloads
359
Abstract Views
1,704
rank
82,016
PlumX Metrics