International Trade and Productivity: The Role of Industry and Export Destination

Shevtsova, Yevgeniya (2015): International Trade and Productivity: The Role of Industry and Export Destination.

Abstract

The study explores the productivity effect associated with all types of firm’s export decisions across destinations. Using micro data on Ukrainian manufacturing firms operating during 2000-2005, I show that high-tech firms experience stronger productivity shocks associated with changes in their export status. Low-tech firms, instead, experience productivity improvements only when entering advanced export markets and are, on average, significantly less sensitive to changes in their export status. The results also show that firms’ characteristics, including productivity, not only improve the firm’s ability to self-select into exporting, but also increase its ability to penetrate a larger number of export markets.

• Item Type: MPRA Paper
• Language: English
• Keywords: exports; TFP; destination specific learning-by-exporting effect, export diversification, system GMM
• Subjects: D - Microeconomics > D2 - Production and Organizations > D24 - Production ; Cost ; Capital ; Capital, Total Factor, and Multifactor Productivity ; Capacity; F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade; L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L25 - Firm Performance: Size, Diversification, and Scope

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