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

By Jens Matthias Arnold, K. Hussinger. 2005

417 citations recorded by the source corpus.

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.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/57384137f7e62e6dfd6f155494f878359a3c3827

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Citations in the corpus

Exports Versus FDI in German Manufacturing: Firm Performance and Participation in International Markets (2010, neutral): “East Germany was a centrally planned economy up to 1989 and has been undergoing a transition process into a market economy since then.”
How Does Investing in Cheap Labour Countries Affect Performance at Home? France and Italy (2006, neutral): “Javorcik (2005), Arnold and Hussinger (2005) , Girma, Greenaway and Kneller (2004),”
Does Services Liberalization Benefit Manufacturing Firms? Evidence from the Czech Republic (2011, positive): “15 Details of the procedure are outlined in Olley and Pakes (1996), as well as in other papers that applied the procedure in the context of international trade and investment, such as Pavcnik (2002), Javorcik (2004) and Arnold and Hussinger (2005).”
Productivity and International Trade: Firm Level Evidence from a Small Open Economy (2008, background): “the predominant finding in the literature is self-selection, i.e., ex ante productivity advantages (Bernard et al. 2007; Arnold and Hussinger 2005 ).”
Learning-by-Exporting Effects: Are They for Real? (2015, background): “…al. (1998), Bernard and Jensen (1999), Aw et al. (2000), Isgut (2001), Delgado et al. (2002), Fafchamps et al. (2002), Alvarez and Lopez (2005), and Arnold and Hussinger (2005) find support for self-selection. selection effects.2 Therefore, the question of whether learning-by-exporting actually…”
Evaluation of credit guarantee policy using propensity score matching (2009, methodology): “In order to deal with the selectivity issue, we adopt propensity score matching estimators, which have been developed in labor economics (Dehejia and Wahba 1999, 2002; Fro ¨lich et al. 2004; Heckman et al. 1997; Smith 2000), and have recently been applied to firm-level studies ( Arnold and Hussinger”
R&D and Subsidies at the Firm Level: An Application of Parametric and Semi-Parametric Two-Step Selection Models (2008, background): “Firms that engage in foreign markets are more innovative than others (Arnold and Hussinger, 2005) and, hence, are more likely to apply for subsidies.”