Export Premium Reversal: Cross-country Evidence

Type Working Paper
Title Export Premium Reversal: Cross-country Evidence
Author(s)
URL http://www.freit.org/WorkingPapers/Papers/FirmLevelProductivity/FREIT592.pdf
Abstract
The difference between exporters and non-exporters has been widely documented. Overall, empirical literature paints a consistent picture: exporters are more productive. In this paper I employ World Bank Enterprise Survey data to document cross-country patterns of productivity differences between exporting and non-exporting establishments. For many countries exporter premium exists which is consistent with the literature on exporting and productivity. Nevertheless, in multiple cases exporters are not significantly different and, more surprisingly, in some cases underperform relative to their domestic counterparts. The difference in the development levels, openness of the economy, infrastructure and governance are considered as possible explanations for cross-country variation in exporter vs. non-exporter productivity differential

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