Export Behavior and Firm Productivity in German Manufacturing: A Firm-Level Analysis

Posted: 1 Aug 2005

See all articles by Jens Matthias Arnold

Jens Matthias Arnold

Organization for Economic Co-Operation and Development (OECD) - Economics Department (ECO)

Katrin Hussinger

Universite du Luxembourg; Catholic University of Leuven (KUL); Centre for European Economic Research (ZEW)

Abstract

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

Suggested Citation

Arnold, Jens Matthias and Hussinger, Katrin, Export Behavior and Firm Productivity in German Manufacturing: A Firm-Level Analysis. Review of World Economics (Weltwirtschaftliches Archiv), Vol. 141, No. 2, pp. 219-243, 2005, Available at SSRN: https://ssrn.com/abstract=761524

Jens Matthias Arnold (Contact Author)

Organization for Economic Co-Operation and Development (OECD) - Economics Department (ECO) ( email )

2 rue Andre Pascal
Paris Cedex 16, 75775
France

Katrin Hussinger

Universite du Luxembourg ( email )

L-1511 Luxembourg
Luxembourg

Catholic University of Leuven (KUL) ( email )

Steunpunt O&O Statistieken
Dekenstraat 2
B-3000 Leuven
Belgium

Centre for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

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