Firm productivity and export markets: a non-parametric approach

Abstract

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.

Information barriers, export promotion institutions, and the extensive margin of trade

“…These differences are significant from a statistical point of view. Using the procedure proposed by Delgado et al (2002), we find that the distribution of the effects associated with the former institutional arrangement statistically dominates that of the effects linked to the latter (see Table 2). …”

Beyond the average effects: The distributional impacts of export promotion programs in developing countries

“…39 Further, these differences are significant from a statistical point of view. Using the procedure proposed by Delgado et al (2002), we find that the distribution of total exports for firms with non-significant impacts statistically dominate those for firms with significant impacts, in general, and that for firms with the strongest impact, in particular. 40 As shown in Table 7, this result holds for both the pooled sample and each sample year.…”

Exports, Foreign Direct Investment, and Productivity: Evidence from German Firm Level Data

“…It uses a nonparametric test for first order stochastic dominance of one distribution over another that was introduced into the empirical literature on exports and productivity by Delgado, Farinas and Ruano (2002): Let F and G denote the cumulative distribution functions of productivity for two groups of firms (say, exporters and firms that serve the national market only). First order stochastic dominance of F relative to G is given if F(z) -G(z) is less or equal zero for all z with strict inequality for some z.…”