GEP Research Paper 04/40
Exports, Restructuring and Industry Productivity Growth
Rod Falvey, David Greenaway, Joakim Gullstrand and Zhihong Yu
Abstract
The impact of firm level productivity heterogeneity on export market entry has been the subject of theoretical innovation and extensive empirical scrutiny in recent years. The latter has focused on falling trade costs and firm level productivity, notwithstanding the fact that theory also points up links between trade and industry level productivity. This paper decomposes productivity growth in Sweden into its various components and links exporting to net entry and reallocation effects. We show that exporting has a sizeable impact on industry productivity growth which is independent of the links between exporting and firm productivity.
Issued in December 2004.
This paper is available in PDF format .