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The Exporter Productivity Premium along the Productivity Distribution: First Evidence from a Quantile Regression Approach for Fixed Effects Panel Data Models

Author

Listed:
  • David Powell

    (RAND Corporation)

  • Joachim Wagner

    (Institute of Economics, Leuphana University of Lüneburg, Germany)

Abstract
An emerging literature on international activities of heterogeneous firms documents that exporting firms are more productive than firms that only sell on the national market. This positive exporter productivity premium shows up in a large number of empirical studies after controlling for observed and unobserved firm characteristics in regression models including firm fixed effects. These studies test for a difference in productivity between exporters and non-exporters at the conditional mean of the productivity distribution. However, if firms are heterogeneous, it is possible that the size of the premium varies over the productivity distribution. In this paper we apply a newly developed estimator for fixed-effects quantile regression models to estimate the exporter productivity premium at quantiles of the productivity distribution for manufacturing enterprises in Germany, one of the leading actors in the world market for goods. We show that the premium decreases over the quantiles – a dimension of firm heterogeneity that cannot be detected through mean regression.

Suggested Citation

  • David Powell & Joachim Wagner, 2010. "The Exporter Productivity Premium along the Productivity Distribution: First Evidence from a Quantile Regression Approach for Fixed Effects Panel Data Models," Working Paper Series in Economics 182, University of Lüneburg, Institute of Economics.
    • Handle: RePEc:lue:wpaper:182
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    References listed on IDEAS

    as
    1. Joachim Wagner, 2006. "Export Intensity and Plant Characteristics: What Can We Learn from Quantile Regression?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 142(1), pages 195-203, April.
    2. Joachim Wagner, 2016. "From Estimation Results to Stylized Facts: Twelve Recommendations for Empirical Research in International Activities of Heterogeneous Firms," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 15, pages 479-514, World Scientific Publishing Co. Pte. Ltd..
    3. Chad Syverson, 2011. "What Determines Productivity?," Journal of Economic Literature, American Economic Association, vol. 49(2), pages 326-365, June.
    4. Joachim Wagner, 2016. "Exports and Productivity: A Survey of the Evidence from Firm Level Data," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 1, pages 3-41, World Scientific Publishing Co. Pte. Ltd..
    5. Moshe Buchinsky, 1998. "Recent Advances in Quantile Regression Models: A Practical Guideline for Empirical Research," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 88-126.
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    18. Natalia Trofimenko, 2008. "Learning by Exporting: Does It Matter Where One Learns? Evidence from Colombian Manufacturing Firms," Economic Development and Cultural Change, University of Chicago Press, vol. 56(4), pages 871-894, July.
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    22. Anna Maria Falzoni & Mara Grasseni, 2005. "Home Country Effects of Investing Abroad: Evidence from Quantile Regressions," KITeS Working Papers 170, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Jun 2005.
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    Cited by:

    1. Joachim Wagner, 2016. "From Estimation Results to Stylized Facts: Twelve Recommendations for Empirical Research in International Activities of Heterogeneous Firms," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 15, pages 479-514, World Scientific Publishing Co. Pte. Ltd..
    2. Maria Rosaria Ferrante & Marzia Freo, 2012. "The Total Factor Productivity Gap between Internationalised and Domestic Firms: Net Premium or Heterogeneity Effect?," The World Economy, Wiley Blackwell, vol. 35(9), pages 1186-1214, September.

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    More about this item

    Keywords

    Exporter productivity premium; quantile regression; fixed effects;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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