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Exporting and productivity in business services : evidence from the United States

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Love, James H. and Mansury, Mica Ariana (2009) Exporting and productivity in business services : evidence from the United States. International Business Review, Volume 18 (Number 6). pp. 630-642. doi:10.1016/j.ibusrev.2009.08.002

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Official URL: http://dx.doi.org/10.1016/j.ibusrev.2009.08.002

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Abstract

Does exporting make firms more productive, or do more productive firms choose to become exporters? This paper considers the link between exporting and productivity for a sample of firms in US business services. We find that larger, more productive firms are more likely to become exporters, but that these factors do not necessarily influence the extent of exporting. This conforms with previous literature that there is a self-selection effect into exporting. We then test for the effect of exporting on productivity levels after allowing for this selection effect. We model both the relationship between exporting and productivity, and a simultaneous relationship between export intensity and productivity after allowing for selection bias. In both cases we find an association, indicating that productivity is positively linked both to exporting and to increased exposure to international markets.

Item Type: Journal Article
Divisions: Faculty of Social Sciences > Warwick Business School > Strategy & International Business
Faculty of Social Sciences > Warwick Business School
Journal or Publication Title: International Business Review
Publisher: Elsevier
ISSN: 0969-5931
Official Date: December 2009
Dates:
DateEvent
December 2009Published
Volume: Volume 18
Number: Number 6
Page Range: pp. 630-642
DOI: 10.1016/j.ibusrev.2009.08.002
Status: Peer Reviewed
Publication Status: Published
Access rights to Published version: Restricted or Subscription Access

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