GEP Research Paper 03/45
Exporting, Productivity and Agglomeration: A Difference in Difference Analysis of Matched Firms
David Greenaway and Richard Kneller
Abstract
In this paper we consider three questions. Why do only some firms enter export markets? What are the benefits to the firm from export market entry? Why do some of these firms exit the market at a future date? Using data on UK manufacturing firms from 1988 to 2002 we find evidence that information spillovers between firms can raise the probability of entry and for a matched sample of firms there are additional benefits once entry has occurred. Exit is driven partly by the size and TFP of the firm, and partly by industry characteristics.
Issued in November 2003.
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