Understanding Cross-Country Differences in Exporter Premia: Comparable Evidence for 14 Countries

• Published in: Review of world economics Vol. 144; no. 4; pp. 596 - 635
• Main Authors: Musso, Patrick, The International Study Group On Exports And Productivity, (isgep)
• Format: Journal Article
• Language: English
• Published: Berlin/Heidelberg Springer 01.12.2008; Springer-Verlag; Springer Nature B.V; Springer Verlag
• Subjects: Business and economics; Comparative economics; Cross-national analysis; Data analysis; Datasets; Economic Policy; Economic theory; Economics; Economics and Finance; Ekonomi; European Integration; Exporters; Exports; Global economy; Gross domestic product; Humanities and Social Sciences; Hypotheses; Industrial productivity; International comparisons; International Economics; International trade; Labor productivity; Macroeconomics/Monetary Economics//Financial Economics; Nationalekonomi; Productivity; SAMHÄLLSVETENSKAP; SOCIAL SCIENCES; Tariffs; Trade; Trade policy; Value added; Variable coefficients; micro data; productivity; international comparison; Exports; Productivity; export
• ISSN: 1610-2878; 1610-2886; 1610-2886
• DOI: 10.1007/s10290-008-0163-y

We use comparable micro level panel data for 14 countries and a set of identically specified empirical models to investigate the relationship between exports and productivity. Our overall results are in line with the big picture that is by now familiar from the literature: exporters are more productive than non-exporters when observed and unobserved heterogeneity is controlled for, and these exporter productivity premia tend to increase with the share of exports in total sales; there is evidence in favour of self-selection of more productive firms into export markets, but nearly no evidence in favour of the learning-by-exporting hypothesis. We document that the exporter premia differ considerably across countries in identically specified empirical models. In a meta-analysis of our results we find, consistent with theoretical predictions, that productivity premia are larger in countries with lower export participation rates, with more restrictive trade policies, lower per capita GDP, less effective government and worse regulatory quality, and in countries exporting to relatively more distant markets.