2009/16 LEM Working Paper Series


Trade and Profitability: Is there an export premium? Evidence from Italian manufacturing firms

Marco Grazzi
  Keywords
 
export premium; productivity; profitability


  JEL Classifications
 
D20, F10, L60


  Abstract
 
Using firm level data this study investigates the relation between export activity and firm's profitability. The paper shows that, contrary to other performance indicators such as productivity, exporting activity is not systematically associated to higher firm's profitability. This is shown both by means of non-parametric methods and, with an approach that is more standard within the empirical trade literature, by regression techniques that try to identify an export premium.


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