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The Link between Firm-Level Productivity and Decisions to Export

Author

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  • Piotr Gabrielczak
  • Tomasz Serwach

Abstract

The aim of this article is to test whether there are differences in productivity between exporters and non-exporters among manufacturing firms from Lodz Voivodeship. Not only do we look for a correlation, but also we verify two main hypotheses about the causality of the postulated relation: self-selection and learning-by-exporting (LBE). We use microeconomic data from the Central Statistical Office of Poland and the Olley-Pakes algorithm to estimate the total factor productivity (TFP) of firms. Then we apply that data to probit and logit estimations of export status and examine TFP increments of new exporters. We did not find sound evidence for self-selection among firms in Lodz Voivodeship. We managed, however, to prove the existence of an LBE effect, though this effect seems to be weak and restricted to certain sectors with comparative advantages. One should keep in mind that our research was limited by data availability and further studies are required. However, this study is a rare example of a regional analysis of international trade and deals with main New New Trade Theory postulates in a complex manner.

Suggested Citation

  • Piotr Gabrielczak & Tomasz Serwach, 2014. "The Link between Firm-Level Productivity and Decisions to Export," Theory Methodology Practice (TMP), Faculty of Economics, University of Miskolc, vol. 10(01), pages 3-8.
    • Handle: RePEc:mic:tmpjrn:v:10:y:2014:i:01:p:3-8
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    References listed on IDEAS

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    Cited by:

    1. Cenk Gokce ADAS, 2016. "Exporting Firms, Productivity And Profitabiliy: A Survey Of The Evidence From Manufacturing Industries," Proceedings of International Academic Conferences 3606362, International Institute of Social and Economic Sciences.

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    More about this item

    Keywords

    productivity; internationalisation; export; Lodz Voivodeship;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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