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Productivity and International Trade: firm-level evidence from a small open economy
KTH, School of Architecture and the Built Environment (ABE), Transport and Economics. KTH, School of Architecture and the Built Environment (ABE), Centres, Centre of Excellence for Science and Innovation Studies, CESIS. (Nationalekonomi)
2008 (English)In: Review of World Economics, ISSN 1610-2878, E-ISSN 1610-2886, Vol. 144, no 4, 774-800 p.Article in journal (Refereed) Published
Abstract [en]

This paper presents a comprehensive description and analysis of the international trading activities of firms based on novel and detailed Swedish data. We provide robust evidence of selection operating from market to market which is consistent with that low productive firms are confined to markets with low productivity thresholds. We further show that selection also applies to the number of products traded. There is a substantial heterogeneity among exporters and importers in terms of the number of markets they trade with and in terms of the number of products they trade. Productivity premiums increase in the number of markets and the number of products traded, respectively. Firms that both export and import (i.e. two-way traders) are more productive than firms that only export or only import. This finding can be explained by that two-way traders are deeply engaged in the international division of labor and employ inputs based on frontier knowledge and technology in their production process, which increase their productivity and success on export markets.

Place, publisher, year, edition, pages
2008. Vol. 144, no 4, 774-800 p.
Keyword [en]
Export premium, Exports, Firm heterogeneity, Import premium, Imports, International trade, Productivity
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:kth:diva-10712DOI: 10.1007/s10290-008-0169-5ISI: 000262576900008Scopus ID: 2-s2.0-58549096913OAI: oai:DiVA.org:kth-10712DiVA: diva2:227560
Note
QC 20100928Available from: 2009-07-15 Created: 2009-07-15 Last updated: 2017-12-13Bibliographically approved

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Lööf, Hans

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Citation style
  • apa
  • harvard1
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  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
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  • nn-NO
  • nn-NB
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  • Other locale
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Output format
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  • asciidoc
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