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Productivity, Networks, and Export Performance: Evidence from a Cross‐country Firm Dataset
Author(s) -
Ricci Luca Antonio,
Trionfetti Federico
Publication year - 2012
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/j.1467-9396.2012.01038.x
Subject(s) - productivity , the internet , business , value (mathematics) , industrial organization , economics , international trade , monetary economics , macroeconomics , computer science , machine learning , world wide web
This paper uses a newly assembled multi‐country multi‐industry firm‐level dataset to test the effect of productivity and networking on the export probability of firms. Results are in line with the new‐new trade theory and with the literature on the information value of networks. Firms are more likely to export if they are more productive, larger, and if they benefit from foreign networks (ownership and financial linkages), domestic networks (chamber of commerce, links to regulation), and communication networks (E‐mail, internet). Firms bear a lower probability of exporting if they are affected by state ownership or unionization networks. Overall, firms with better network connections by one standard deviation enjoy a 15% higher probability of exporting.