IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-13-00084.html
   My bibliography  Save this article

Are low-productive exporters marginal exporters? Evidence from Germany

Author

Listed:
  • Joachim Wagner

    (Leuphana University Lueneburg)

Abstract

A stylized fact from the emerging literature on the micro-econometrics of international trade and a central implication of the heterogeneous firm models from the new new trade theory is that exporters are more productive than non-exporters. It is argued that this exporter-productivity premium is due to extra cost of exporting that can be covered profitably by more productive firms only. Germany is a case in point - exporting firms from manufacturing industries are more productive than non-exporting firms from the same 4-digit industry both on average and over the whole productivity distribution. However, many firms from the lower end of this distribution are exporters. This paper report that these low-productivity exporters are not marginal exporters defined according to the share of exports in total sales, or export participation over time, or the number of goods exported, or the number of countries exported to.

Suggested Citation

  • Joachim Wagner, 2013. "Are low-productive exporters marginal exporters? Evidence from Germany," Economics Bulletin, AccessEcon, vol. 33(1), pages 467-481.
  • Handle: RePEc:ebl:ecbull:eb-13-00084
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2013/Volume33/EB-13-V33-I1-P45.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Andrew Bernard & Joachim Wagner, 1997. "Exports and success in German manufacturing," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 133(1), pages 134-157, March.
    2. Stephen J. Redding, 2011. "Theories of Heterogeneous Firms and Trade," Annual Review of Economics, Annual Reviews, vol. 3(1), pages 77-105, September.
    3. Melitz, Marc J. & Redding, Stephen J., 2014. "Heterogeneous Firms and Trade," Handbook of International Economics, in: Gopinath, G. & Helpman, . & Rogoff, K. (ed.), Handbook of International Economics, edition 1, volume 4, chapter 0, pages 1-54, Elsevier.
    4. Chad Syverson, 2011. "What Determines Productivity?," Journal of Economic Literature, American Economic Association, vol. 49(2), pages 326-365, June.
    5. Andrew B. Bernard & J. Bradford Jensen & Stephen J. Redding & Peter K. Schott, 2012. "The Empirics of Firm Heterogeneity and International Trade," Annual Review of Economics, Annual Reviews, vol. 4(1), pages 283-313, July.
    6. Lucia Foster & John Haltiwanger & Chad Syverson, 2008. "Reallocation, Firm Turnover, and Efficiency: Selection on Productivity or Profitability?," American Economic Review, American Economic Association, vol. 98(1), pages 394-425, March.
    7. David Powell & Joachim Wagner, 2011. "The Exporter Productivity Premium along the Productivity Distribution Evidence from Unconditional Quantile Regression with Firm Fixed Effects," Working Papers WR-837, RAND Corporation.
    8. Elhanan Helpman, 2006. "Trade, FDI, and the Organization of Firms," Journal of Economic Literature, American Economic Association, vol. 44(3), pages 589-630, September.
    9. Juan Carlos Hallak & Jagadeesh Sivadasan, 2009. "Firms' Exporting Behavior under Quality Constraints," Working Papers 09-13, Center for Economic Studies, U.S. Census Bureau.
    10. Helpman, Elhanan, 2011. "Understanding Global Trade," Economics Books, Harvard University Press, number 9780674060784, Spring.
    11. David Powell & Joachim Wagner, 2021. "The Exporter Productivity Premium Along the Productivity Distribution: Evidence from Quantile Regression with Nonadditive Firm Fixed Effects," World Scientific Book Chapters, in: Joachim Wagner (ed.), MICROECONOMETRIC STUDIES OF FIRMS’ IMPORTS AND EXPORTS Advanced Methods of Analysis and Evidence from German Enterprises, chapter 9, pages 121-149, World Scientific Publishing Co. Pte. Ltd..
    12. David Greenaway & Richard Kneller, 2007. "Firm heterogeneity, exporting and foreign direct investment," Economic Journal, Royal Economic Society, vol. 117(517), pages 134-161, February.
    13. Mark Doms & Eric J. Bartelsman, 2000. "Understanding Productivity: Lessons from Longitudinal Microdata," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 569-594, September.
    14. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    15. Joachim Wagner, 2008. "A note on why more West than East German firms export," International Economics and Economic Policy, Springer, vol. 5(4), pages 363-370, December.
    16. David Powell & Joachim Wagner, 2011. "The Exporter Productivity Premium along the Productivity Distribution Evidence from Unconditional Quantile Regression with Firm Fixed Effects," Working Papers 837, RAND Corporation.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Arijit Mukherjee & Umut Erksan Senalp, 2021. "Firm‐productivity and cross border merger," Review of International Economics, Wiley Blackwell, vol. 29(4), pages 838-859, September.
    2. Joachim Wagner, 2014. "Low-productive exporters are high-quality exporters. Evidence from Germany," Economics Bulletin, AccessEcon, vol. 34(2), pages 745-756.
    3. Joachim Wagner, 2016. "A survey of empirical studies using transaction level data on exports and imports," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(1), pages 215-225, February.
    4. Bin Qiu & Zhijun Yan, 2017. "Market Efficiency, Heterogeneous Trade Costs and Export-Only Firms," Pacific Economic Review, Wiley Blackwell, vol. 22(1), pages 101-122, February.
    5. Sánchez, Patricio & Gallego, Elena & Rivero, Dolores & Lago-Peñas, Santiago, 2014. "El impacto de la internacionalización sobre las empresas: Evidencia empírica para el caso español [The impact of internationalization on firms: Empirical evidence for the Spanish case]," MPRA Paper 54602, University Library of Munich, Germany.
    6. Arijit Mukherjee, 2017. "Firm-productivity and export under non-constant marginal costs," Economics Bulletin, AccessEcon, vol. 37(2), pages 911-917.
    7. Joachim Wagner, 2014. "New Data from Official Statistics for Imports and Exports of Goods by German Enterprises," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 134(3), pages 371-378.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Joachim Wagner, 2014. "Low-productive exporters are high-quality exporters. Evidence from Germany," Economics Bulletin, AccessEcon, vol. 34(2), pages 745-756.
    2. Joachim Wagner, 2016. "International Trade and Firm Performance: A Survey of Empirical Studies since 2006," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 2, pages 43-87, World Scientific Publishing Co. Pte. Ltd..
    3. Joachim Wagner & Yama Temouri, 2021. "Do Outliers and Unobserved Heterogeneity Explain the Exporter Productivity Premium? Evidence from France, Germany and the United Kingdom," World Scientific Book Chapters, in: Joachim Wagner (ed.), MICROECONOMETRIC STUDIES OF FIRMS’ IMPORTS AND EXPORTS Advanced Methods of Analysis and Evidence from German Enterprises, chapter 13, pages 223-236, World Scientific Publishing Co. Pte. Ltd..
    4. David Powell & Joachim Wagner, 2021. "The Exporter Productivity Premium Along the Productivity Distribution: Evidence from Quantile Regression with Nonadditive Firm Fixed Effects," World Scientific Book Chapters, in: Joachim Wagner (ed.), MICROECONOMETRIC STUDIES OF FIRMS’ IMPORTS AND EXPORTS Advanced Methods of Analysis and Evidence from German Enterprises, chapter 9, pages 121-149, World Scientific Publishing Co. Pte. Ltd..
    5. Wagner, Joachim, 2011. "Productivity and International Firm Activities: What Do We Know?," IZA Policy Papers 23, Institute of Labor Economics (IZA).
    6. Joachim Wagner, 2016. "Trading Many Goods with Many Countries: Exporters and Importers from German Manufacturing Industries," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 14, pages 455-476, World Scientific Publishing Co. Pte. Ltd..
    7. Rutzer, Christian, 2014. "A Theory of Trade Liberalization and Innovations with Heterogeneous Firms," Working papers 2014/02, Faculty of Business and Economics - University of Basel.
    8. David Powell & Joachim Wagner, 2011. "The Exporter Productivity Premium along the Productivity Distribution Evidence from Unconditional Quantile Regression with Firm Fixed Effects," Working Papers WR-837, RAND Corporation.
    9. Joachim Wagner, 2015. "New Methods for the Analysis of Links between International Firm Activities and Firm Performance: A Practitioner's Guide," The World Economy, Wiley Blackwell, vol. 38(4), pages 704-715, April.
    10. Joachim Wagner, 2012. "Exports, R&D and productivity: a test of the Bustos-model with German enterprise data," Economics Bulletin, AccessEcon, vol. 32(3), pages 1942-1948.
    11. Vincenzo Verardi & Joachim Wagner, 2021. "Productivity Premia for German Manufacturing Firms Exporting to the Euro-area and Beyond: First Evidence from Robust Fixed Effects Estimations," World Scientific Book Chapters, in: Joachim Wagner (ed.), MICROECONOMETRIC STUDIES OF FIRMS’ IMPORTS AND EXPORTS Advanced Methods of Analysis and Evidence from German Enterprises, chapter 7, pages 87-109, World Scientific Publishing Co. Pte. Ltd..
    12. Richter, Philipp M. & Schiersch, Alexander, 2017. "CO2 emission intensity and exporting: Evidence from firm-level data," European Economic Review, Elsevier, vol. 98(C), pages 373-391.
    13. Ingo Geishecker & Philipp J. H. Schröder & Allan Sørensen, 2017. "Explaining the size differences of exporter premia: theory and evidence," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 153(2), pages 327-351, May.
    14. Joachim Wagner, 2014. "Extensive margins of imports, productivity and profitability: First evidence for manufacturing enterprises in Germany," Economics Bulletin, AccessEcon, vol. 34(3), pages 1669-1678.
    15. David Powell & Joachim Wagner, 2011. "The Exporter Productivity Premium along the Productivity Distribution Evidence from Unconditional Quantile Regression with Firm Fixed Effects," Working Papers 837, RAND Corporation.
    16. repec:wsr:fiwspe:y:2012:i:005 is not listed on IDEAS
    17. Joachim Wagner, 2014. "Extensive Margins of Imports and Profitability: First Evidence for Manufacturing Enterprises in Germany," Working Paper Series in Economics 298, University of Lüneburg, Institute of Economics.
    18. Krenz, Astrid, 2019. "Firm heterogeneity, productivity, and the extensive margins of trade - differences between manufacturing firms in East and West Germany," University of Göttingen Working Papers in Economics 369, University of Goettingen, Department of Economics.
    19. Powell, David & Wagner, Joachim, 2010. "The Exporter Productivity Premium along the Productivity Distribution: First Evidence from a Quantile Regression Approach for Fixed Effects Panel Data Models," IZA Discussion Papers 5112, Institute of Labor Economics (IZA).
    20. Federici, Daniela & Parisi, Valentino & Ferrante, Francesco, 2020. "Heterogeneous firms, corporate taxes and export behavior: A firm-level investigation for Italy," Economic Modelling, Elsevier, vol. 88(C), pages 98-112.
    21. Langenmayr, Dominika & Haufler, Andreas & Bauer, Christian J., 2015. "Should tax policy favor high- or low-productivity firms?," European Economic Review, Elsevier, vol. 73(C), pages 18-34.

    More about this item

    Keywords

    Exports; productivity; low-productive exporters; Germany;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • L6 - Industrial Organization - - Industry Studies: Manufacturing

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-13-00084. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.