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The Export-Growth Relationship: Estimating a Dose-Response Function

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  • Fryges, Helmut

Abstract

The relationship between individual firms? export behaviour and firm performance has been studied extensively in the economic literature. However, most studies from the field of economics only distinguish between exporting and non-exporting companies, using the firms? export status as a binary treatment variable and comparing the performance of exporting and non-exporting firms. This paper introduces the newly developed generalised propensity score (GPS) methodology to the literature of individual firms? export behaviour. Instead of a binary treatment variable, the GPS method allows for continuous treatment, that is, different levels of the firms? export activities. Based on the GPS methodology, a dose-response function is estimated, depicting the relationship between the firms? pre-treatment export-sales ratio and their subsequent sales growth rate as a measure of firm performance.

Suggested Citation

  • Fryges, Helmut, 2006. "The Export-Growth Relationship: Estimating a Dose-Response Function," ZEW Discussion Papers 06-028, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:4612
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    References listed on IDEAS

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    Cited by:

    1. Helmut Fryges & Joachim Wagner, 2021. "Exports and Productivity Growth — First Evidence from a Continuous Treatment Approach," 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 6, pages 57-86, World Scientific Publishing Co. Pte. Ltd..
    2. Neil Foster-McGregor, 2012. "Innovation and Technology Transfer across Countries," wiiw Research Reports 380, The Vienna Institute for International Economic Studies, wiiw.
    3. Carlos A. Flores, 2007. "Estimation of Dose-Response Functions and Optimal Doses with a Continuous Treatment," Working Papers 0707, University of Miami, Department of Economics.

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    More about this item

    Keywords

    Degree of internationalisation; continuous treatment; generalised propensity score; dose-response function; high-technology industries;
    All these keywords.

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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