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Exports and Firm Profitability: Quality matters!

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  • Wagner, Joachim

    (Leuphana University Lueneburg and CESIS, Stockholm)

Abstract

This paper uses a tailor-made newly available data set to investigate for the first time the links between profitability and the quality of exports in enterprises from manufacturing industries in Germany, one of the leading actors on the world market for goods. The paper demonstrates that exporters of high-quality goods tend to be more profitable.

Suggested Citation

  • Wagner, Joachim, 2014. "Exports and Firm Profitability: Quality matters!," Working Paper Series in Economics and Institutions of Innovation 352, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    • Handle: RePEc:hhs:cesisp:0352
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    References listed on IDEAS

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    1. 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.
    2. Joachim Wagner, 2016. "Exports, Imports and Profitability: First Evidence for Manufacturing Enterprises," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 9, pages 311-338, World Scientific Publishing Co. Pte. Ltd..
    3. 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.
    4. 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.
    5. Schmalensee, Richard, 1989. "Inter-industry studies of structure and performance," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 16, pages 951-1009, Elsevier.
    6. 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.
    7. R. Schmalensee & R. Willig (ed.), 1989. "Handbook of Industrial Organization," Handbook of Industrial Organization, Elsevier, edition 1, volume 2, number 2.
    8. R. Schmalensee & R. Willig (ed.), 1989. "Handbook of Industrial Organization," Handbook of Industrial Organization, Elsevier, edition 1, volume 1, number 1.
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    Citations

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    Cited by:

    1. 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.
    2. Mercè Sala‐Ríos, 2024. "What are the determinants affecting cooperatives’ profitability? Evidence from Spain," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 95(1), pages 85-111, March.
    3. 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.
    4. Hoedoafia, Mabel Akosua, 2019. "Trade Liberalization and Firm Profitability: Insights from Ghana's Manufacturing Sector," MPRA Paper 97133, University Library of Munich, Germany.

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    More about this item

    Keywords

    Exports; export quality; profitability; Germany;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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