Does Exporting Increase Productivity? A Microeconometric Analysis of Matched Firms

12 Pages Posted: 31 Oct 2004

See all articles by Sourafel Girma

Sourafel Girma

Nottingham University Business School

David Greenaway

University of Nottingham - School of Economics

Richard Kneller

University of Nottingham

Abstract

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

Suggested Citation

Girma, Sourafel and Greenaway, David and Kneller, Richard, Does Exporting Increase Productivity? A Microeconometric Analysis of Matched Firms. Review of International Economics, Vol. 12, No. 5, pp. 855-866, November 2004. Available at SSRN: https://ssrn.com/abstract=608509

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/

David Greenaway

University of Nottingham - School of Economics ( email )

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

Richard Kneller (Contact Author)

University of Nottingham ( email )

University Park
Nottingham, NG8 1BB
United Kingdom

Register to save articles to
your library

Register

Paper statistics

Downloads
30
Abstract Views
1,882
PlumX Metrics