NDLI: Higher productivity in importing German manufacturing firms: self-selection, learning from importing, or both?

Content Provider	Springer Nature Link
Author	Vogel, Alexander Wagner, Joachim
Copyright Year	2009
Abstract	This paper uses a newly available comprehensive panel data set for manufacturing enterprises from 2001 to 2005 to document the first empirical results on the relationship between imports and productivity for Germany, a leading actor on the world market for goods. Furthermore, for the first time the direction of causality in this relationship is investigated systematically by testing for self-selection of more productive firms into importing, and for productivity-enhancing effects of imports (‘learning-by-importing’). We find a positive link between importing and productivity. From an empirical model with fixed enterprise effects that controls for firm size, industry, and unobservable firm heterogeneity we see that the premia for trading internationally are about the same in West and East Germany. Compared to firms that do not trade at all two-way traders do have the highest premia, followed by firms that only export, while firms that only import have the smallest estimated premia. We find evidence for a positive impact of productivity on importing, pointing to self-selection of more productive enterprises into imports, but no clear evidence for the effect of importing on productivity due to learning-by-importing.
Starting Page	641
Ending Page	665
Page Count	25
File Format	PDF
ISSN	16102878
Journal	Weltwirtschaftliches Archiv
Volume Number	145
Issue Number	4
e-ISSN	16102886
Language	English
Publisher	Springer-Verlag
Publisher Date	2009-10-25
Publisher Place	Berlin, Heidelberg
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Imports Exports Productivity Enterprise panel data Germany Economics general International Economics
Content Type	Text
Resource Type	Article
Subject	Economics, Econometrics and Finance

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Higher productivity in importing German manufacturing firms: self-selection, learning from importing, or both? (Vogel, Alexander;Wagner, Joachim)

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