This paper examines total factor productivity differences between exporting and nonexporting firms These differences are documented on the basis of a sample of Spanish manufacturing firm over the period 1991-1996. The paper also examines two complementary explanations for the greater productivity of exporting firms (1) the market selection hypothesis, and (2) the learning hypothesis. Non-parametric tests are proposed and implemented for testing these hypotheses. Results indicate clearly higher levels of productivity for exporting firm than for non-exporting firms With respect to the relative merits of the selection and the learning hypotheses, we fin evidence supporting the self-selection of more productive firm in the export market. The evidence in favor of learning-by-exporting is rather weak, and limited to younger exporters.

In a previous paper, Delgado, Fariñas and Ruano (2002) report TFP differences between exporters and non-exporters on the basis of a sample of Spanish manufacturing firms. In this paper, we extend the previous analysis in three directions using a similar data set. First, we investigate additional economic performance differences between exporters and non-exporters. Second, we measure TFP differences estimating production functions that control for unobserved heterogeneity and simultaneity bias. Third, we explore the self-selection and learning-by-exporting hypothesis as explanations for the greater performance of exporters. With respect to the results, we confirm that many indicators of economic performance such as productivity, size, wages and innovation are greater in exporting firms. Furthermore, TFP differences between exporters and non-exporters estimated with parametric methods are remarkably similar to those estimated using index numbers. Finally, performance differences and transition patterns between the export market and the domestic market indicate higher performance for entering exporters with respect to non-exporters at the moment of entry. We find evidence of selection in the entry and the exit side of the export market. One of the basic results that we obtain indicates that after controlling for self-selection, the productivity growth of entering exporters does not significantly change with respect to non-exporters. As the evidence we find indicates no systematic changes in performance between non-exporters and exporters after entry takes place, we do not confirm the learning-by-exporting hypothesis. Copyright 2007 The Authors Journal compilation Blackwell Publishing Ltd. 2007 .

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The objective of this paper is to explore the relationship between foreign sourcing and productivity at the firm level. To organise the empirical work, we rely on Antràs and Helpman's model (2004), which predicts that high-productivity firms engage in trade (foreign sourcing) and low-productivity firms do not source abroad. The paper performs productivity comparisons between groups of firms sourcing abroad and firms which do not source abroad, applying non-parametric procedures to a sample of Spanish manufacturing firms. Our results indicate the existence of large and significant differences in productivity between firms that source abroad and those that do not. The productivity premium of foreign sourcing firms is robust to other characteristics that are associated with firm productivity. Furthermore, the evidence reported is consistent with self-selection of the most productive firms into the practice of sourcing abroad. The ex ante productivity distribution of firms that engage in foreign sourcing stochastically dominates the distribution of firms which do not source abroad. Finally, our estimates suggest that changing the intensity of foreign sourcing is a technology shifter for firms, and this has a direct impact on their total factor productivity. Copyright 2010 Blackwell Publishing Ltd.

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