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Trade and technology: new evidence on the productivity sorting of firms

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  • Irene Bertschek
  • Jan Hogrefe
  • Fabienne Rasel

Abstract

Recent advances in trade theory suggest novel gains from trade liberalisation through technology adoption by expanding exporting firms. These theories rely on strict assumptions regarding the productivity sorting of firms with different technology use. In this paper, we test the sorting of German firms using data on actually implemented technologies. Our analysis distinguishes between manufacturing and service industries. In case of the former, we confirm the sorting pattern of the most productive firms being high-tech exporters, followed by low-tech exporters and then domestic low-tech firms. For services, the evidence is mixed and potentially depends on the tradability of the considered services. Copyright Kiel Institute 2015

Suggested Citation

  • Irene Bertschek & Jan Hogrefe & Fabienne Rasel, 2015. "Trade and technology: new evidence on the productivity sorting of firms," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(1), pages 53-72, February.
    • Handle: RePEc:spr:weltar:v:151:y:2015:i:1:p:53-72
    DOI: 10.1007/s10290-014-0202-9
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    8. 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..
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    Cited by:

    1. Fabienne Rasel, 2017. "ICT and global sourcing – evidence for German manufacturing and service firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 26(7), pages 634-660, October.
    2. Stefano Costa & Federico Sallusti & Claudio Vicarelli & Davide Zurlo, 2022. "Tech on the ROC: export threshold and technology adoption interacted," Small Business Economics, Springer, vol. 59(4), pages 1593-1611, December.
    3. Sakshi Aggarwal & Debashis Chakraborty, 2021. "Which Factors influence Vertical Intra-Industry Trade in India? Empirical Results from Panel Data Analysis," Working Papers 2154, Indian Institute of Foreign Trade.
    4. Lüdering, Jochen, 2014. "The measurement of internet availability and quality in the context of the discussion on digital divide," Discussion Papers 65, Justus Liebig University Giessen, Center for international Development and Environmental Research (ZEU).
    5. Rasel, Fabienne, 2013. "Produktivitätsverteilung angesichts von Auslandsaktivität und Technologieintensität," ZEW Wachstums- und Konjunkturanalysen, ZEW - Leibniz Centre for European Economic Research, vol. 16(4), pages 10-11.
    6. Fabienne Rasel, 2016. "Combining Information Technology and Decentralized Workplace Organization: SMEs versus Larger Firms," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 23(2), pages 199-241, July.
    7. Stiebale, Joel & Südekum, Jens & Woessner, Nicole, 2020. "Robots and the rise of European superstar firms," DICE Discussion Papers 347, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    8. Capuano, Stella & Hauptmann, Andreas & Schmerer, Hans-Jörg, 2020. "Trade and unions: Does size matter?," Economic Modelling, Elsevier, vol. 84(C), pages 66-75.
    9. Rasel, Fabienne, 2014. "Combining technology and work organization: An analysis of complementarity between IT and decentralization across firms of different size," ZEW Discussion Papers 14-071, ZEW - Leibniz Centre for European Economic Research.
    10. Jens Suedekum & Nicole Woessner, 2019. "Robots & the Rise of European Superstar Firms," European Economy - Discussion Papers 118, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    11. Olga N. Buchinskaya & Evgeniy P. Dyatel, 2019. "Influence of high-technology exports and foreign charges for the use of intellectual property on economic growth," Journal of New Economy, Ural State University of Economics, vol. 20(2), pages 114-126, May.

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    More about this item

    Keywords

    Exports; Productivity; Sorting; Information technology; Firm-level data; F14; F23; F61;
    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
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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