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Firms´productivity and the export market: a nonparametric approach

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  • Fariñas, José C.
  • Ruano, Sonia

Abstract

This paper examines total factor productivity differences between exporting and nonexporting firms. These differences are documented on the basis of a sample of Spanish manufacturing firms over the period 1991-1996 drawn from the ESEE. The paper also examines two complementary explanations for the superior productivity of exporting firms: 1) the market selection hypothesis, and 2) the learning hypothesis. Nonparametric tests are implemented for testing these hypothesis. Results indicate clearly higher levels of productivity for exporting firms than for non-exporting firms. Evidence favours the hypothesis of self-selection of more efficient firms into the export market. However there is little evidence that these efficiency gains are supportive of the learning-by-exporting hypothesis.

Suggested Citation

  • Fariñas, José C. & Ruano, Sonia, 1999. "Firms´productivity and the export market: a nonparametric approach," DES - Working Papers. Statistics and Econometrics. WS 6345, Universidad Carlos III de Madrid. Departamento de Estadística.
    • Handle: RePEc:cte:wsrepe:6345
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    References listed on IDEAS

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    1. Leonidas C Leonidou & Constatine S Katsikeas, 1996. "The Export Development Process: An Integrative Review of Empirical Models," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(3), pages 517-551, September.
    2. Good, D. & Nadiri, M.I. & Sickles, R., 1996. "Index Number and Factor Demand Approaches to the Estimarion of Productivity," Working Papers 96-34, C.V. Starr Center for Applied Economics, New York University.
    3. Richard Ericson & Ariel Pakes, 1995. "Markov-Perfect Industry Dynamics: A Framework for Empirical Work," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 62(1), pages 53-82.
    4. Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-670, May.
    5. Hopenhayn, Hugo A, 1992. "Entry, Exit, and Firm Dynamics in Long Run Equilibrium," Econometrica, Econometric Society, vol. 60(5), pages 1127-1150, September.
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    Keywords

    Total factor productivity;

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