Journal Article

Export-market dynamics and firm-level productivity: evidence for UK tradable sectors

Richard Harris and Qian Cher Li

in Industrial and Corporate Change

Volume 21, issue 3, pages 649-670
Published in print June 2012 | ISSN: 0960-6491
Published online August 2011 | e-ISSN: 1464-3650 | DOI: https://dx.doi.org/10.1093/icc/dtr054
Export-market dynamics and firm-level productivity: evidence for UK tradable sectors

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  • Firm Objectives, Organization, and Behaviour
  • International Trade
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  • Production and Organizations

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This study empirically assesses the microeconomic productivity impact associated with export-market transitions, providing the first analysis for the whole tradable economy for the UK. Using weighted firm-level data for both UK production and service sectors covering the 1996–2004 period, and based on estimation for 14 industry groups separately, our findings show that a productivity effect resulting from UK firms entering and exiting export markets is present in many industries but it is not universal. Our overall estimate for the UK economy suggests a substantial postentry productivity gain for firms new to exporting; a negative productivity effect for firms exiting overseas markets; and significant productivity gains for those that are observed to have both switched into and out of export markets. We also find that such productivity effects are larger in the services, when compared to production (the latter encompassing agriculture, manufacturing, and construction).

Keywords: D24; F14; L25; R38

Journal Article.  8587 words.  Illustrated.

Subjects: Firm Objectives, Organization, and Behaviour ; International Trade ; Housing Markets, Production Analysis, and Business Location ; Production and Organizations

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