NDLI: Productivity and International Trade: Firm Level Evidence from a Small Open Economy

Content Provider	Springer Nature Link
Author	Andersson, Martin Lööf, Hans Johansson, Sara
Copyright Year	2008
Abstract	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.
Starting Page	774
Ending Page	801
Page Count	28
File Format	PDF
ISSN	16102878
Journal	Weltwirtschaftliches Archiv
Volume Number	144
Issue Number	4
e-ISSN	16102886
Language	English
Publisher	Springer-Verlag
Publisher Date	2008-01-01
Publisher Place	Berlin, Heidelberg
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	International trade exports imports firm heterogeneity productivity import premium export premium International Economics Economics general
Content Type	Text
Resource Type	Article
Subject	Economics, Econometrics and Finance

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