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Exports and Productivity Growth – First Evidence from a Continuous Treatment Approach
Citation
Fryges, HR and Wagner, J, Exports and Productivity Growth - First Evidence from a Continuous Treatment Approach, Review of World Economics, 144, (4) pp. 694-721. ISSN 1610-2878 (2008) [Refereed Article]
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Copyright Kiel Institute
DOI: doi:10.1007/s10290-008-0166-8
Abstract
A recent survey of 54 micro-econometric studies reveals that exporting
firms are more productive than non-exporters. However, previous empirical studies show that exporting does not necessarily improve productivity. One possible reason for this result is that most previous studies are restricted to analysing the relationship between a firm’s export status and the growth of its labour productivity, using the firms’ export status as a binary treatment variable and comparing the performance of exporting and non-exporting firms. In this paper, we apply the newly developed generalised propensity score (GPS) methodology that allows for continuous treatment, that is, different levels of the firms’ export activities. Using the GPS method and a large panel data set for German manufacturing firms, we estimate the relationship between a firm’s export-sales ratio and its labour productivity growth rate. We find that there is a causal effect of firms’ export activities on labour productivity growth. However, exporting improves labour productivity growth only within a sub-interval of the range of firms’ export-sales ratios.
Item Details
Item Type: | Refereed Article |
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Keywords: | Export-sales ratio; labour productivity; continuous treatment; dose-response function |
Research Division: | Economics |
Research Group: | Applied economics |
Research Field: | Industry economics and industrial organisation |
Objective Division: | Economic Framework |
Objective Group: | Microeconomics |
Objective Field: | Microeconomics not elsewhere classified |
UTAS Author: | Fryges, HR (Dr Helmut Fryges) |
ID Code: | 85374 |
Year Published: | 2008 |
Web of Science® Times Cited: | 47 |
Deposited By: | Australian Innovation Research Centre |
Deposited On: | 2013-07-02 |
Last Modified: | 2014-02-06 |
Downloads: | 0 |
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