2014/25 | LEM Working Paper Series | ||||||||||||||||
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Productivity Sorting and Mode of Export |
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Macro Grazzi and Chiara Tomasi |
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Keywords | |||||||||||||||||
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heterogeneous firms, international trade, direct and indirect exports intermediation
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JEL Classifications | |||||||||||||||||
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F14, D22, L22
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Abstract | |||||||||||||||||
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This paper investigates the relation between firms’ productivity and
export- ing behavior in presence of export intermediaries. Using a
cross section of firm- level data for several advanced and developing
economies, the study confirms the productivity-sorting prediction
according to which domestic firms are less efficient than those
resorting to an export intermediary, while the latter are less
productive than producers which export directly. Our novel finding is
that firms’ productivity has a stronger effect on the probability of
exporting directly than on the likeli- hood of exporting
indirectly. This suggests for a stronger role of intermediaries in
granting foreign market access to a large proportion of small and less
productive firms.
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