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The U-Shaped Productivity Dynamics of French Exporters

Abstract : We use data on French manufacturing firms to reveal that the productivity dynamics of new exporters is typically U-shaped. Prior to entry, firm productivity temporarily decreases, then recovers contemporaneously with entry, as the benefits from sales to foreign markets accrue. We show that the U-shaped pattern is more pronounced for intensively exporting firms and for firms operating in capital-intensive or high-technology sectors. This finding suggests that firms prepare to become exporters through prior specific investments and learning-to-export mechanisms. We then point to the limitations of studies that focus only on date of entry to exporting to discriminate between self-selection versus learning mechanisms.
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Submitted on : Friday, November 5, 2021 - 2:52:32 PM
Last modification on : Saturday, June 25, 2022 - 11:53:47 PM

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  • HAL Id : hal-03417076, version 1
  • SCIENCESPO : 2441/9926

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Lionel Nesta, Flora Bellone, Patrick Musso, Michel Quéré. The U-Shaped Productivity Dynamics of French Exporters. Weltwirtschaftliches Archiv = Review of World Economics, 2008, 144 (4), pp.636 - 659. ⟨hal-03417076⟩

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