Export Behavior and Firm Productivity in German Manufacturing: A Firm-Level Analysis
Posted: 1 Aug 2005
This paper examines the causal relationship between productivity and exporting in German manufacturing. We find a causal link from high productivity to presence in foreign markets, as postulated by a recent literature on international trade with heterogeneous firms. We apply a matching technique in order to analyze whether the presence in international markets enables firms to achieve further productivity improvements, without finding significant evidence for this. We conclude that high-productivity firms self-select themselves into export markets, while exporting itself does not play a significant role for the productivity of German firms.
Keywords: Exports, export-led growth, total factor productivity, heterogeneous firms
JEL Classification: F10, F13, F14, D21, L60
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