2009/16 LEM Working Paper Series

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

Marco Grazzi
export premium; productivity; profitability

  JEL Classifications
D20, F10, L60

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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