Assessing European Firms' Exports and Productivity Distributions: The CompNet Trade Module

Berthou, Antoine; Dhyne, Emmanuël; Bugamelli, Matteo; Cazacu, Ana-Maria; Demian, Calin-Vlad; Harasztosi, Péter; Lalinsky, Tibor; Meriküll, Jaanika; Oropallo, Filippo; Soares, Ana Cristina

doi:10.2139/ssrn.2621440

Cited by 16 publications

(9 citation statements)

References 37 publications

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“…A first channel is based on the assumption that exporting firms are more likely to be higher up in the value chain (Amador & Cabral, 2016; Dhyne & Duprez, 2013, 2015) and on strong evidence that exporting firms are more productive (Baldwin & Yan, 2017; Berthou et al, 2015). The causal impact of exports (and thus of upstreamness) on productivity could be explained not only by greater specialisation and increased economies of scale/scope (OECD, 2013), but also by the larger foreign markets associated with exports, which allows exporting (i.e.…”

Section: Introductionmentioning

confidence: 99%

Productivity and wage effects of firm‐level upstreamness: Evidence from Belgian linked panel data

et al. 2021

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This paper is the first to estimate the impact of a direct measurement of firm-level upstreamness (i.e. the stepsweighted distance-before the production of a firm meets either domestic or foreign final demand) on productivity and wage costs. To this end, we merged detailed Belgian linked panel data, covering all years from 2002 to 2010, with a unique dataset containing accurate information on the yearly position of each firm in the value chain.We rely on the methodological framework pioneered by Hellerstein et al. (Journal of Labor Economics, 1999, 17, 409) to estimate panel data models at the firm level.Controlling for key worker and firm characteristics, our GMM-SYS and FE-IV estimates show that firms positioned more upstream (i.e. further away from the final consumer) create more value. Our results also indicate that the impact of firm-level upstreamness is stronger on productivity than on wage costs, which implies that profitability is fostered. More precisely, in line with Belgium's strong labour market institutions, our estimates suggest that the productivity gains associated with upstreamness are shared almost equally between wages and profits.

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Section: Introductionmentioning

confidence: 99%

Productivity and wage effects of firm‐level upstreamness: Evidence from Belgian linked panel data

et al. 2021

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“…Second, it can be argued that leading firms, which are mainly upstream due to their innovation and R&D activities, tend to keep a strong control over high‐value‐added downstream activities such as marketing, which strengthens their productivity. Moreover, it is reasonable to assume that exporting firms, which are generally found to be more productive (Baldwin & Yan, 2017; Berthou et al, 2015), are more likely to operate at higher stages of the value chain (Amador & Cabral, 2016; Dhyne & Duprez, 2015). According to Serpa and Krishnan (2018), upstreamness can also enhance productivity through upstream spillovers in the form of knowledge transfers from large, highly productive customers to suppliers.…”

Section: Introductionmentioning

confidence: 99%

Wage differences according to workers' origin: The role of working more upstream in GVCs

Fays¹,

Mahy

Rycx

2023

Labour

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This paper is the first to investigate the role of firm-level upstreamness (i.e. the number of steps before the production of a firm meets final demand) in explaining wage differences according to workers' origin. Using unique linked employer-employee data relative to the Belgian manufacturing industry for the period 2002-2010, our estimates show that firms that are further up in the value chain pay significantly higher wages. However, the wage premium associated with upstreamness is also found to vary substantially depending on the origin of the workers. Unconditional quantile estimates suggest that those who benefit the most from being employed in more upstream firms are high-wage workers born in developed countries. In contrast, workers born in developing countries, irrespective of their earnings, appear to be unfairly rewarded. Quantile decompositions further show that, while differences in average values of upstreamness according to workers' origin play a limited role, differences in wage premia associated with upstreamness account for a substantial part of the wage gap between workers born in developed and developing countries, especially at the top of the earnings distribution. These results are shown to be robust to a number of sensitivity tests, including broader or narrower definitions of workers' wages and different firm environments in terms of technological and knowledge intensity.

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“…According to Berthou et al. (2015), European firms' sales strongly depend on export revenue as export sales represented 46% of their revenue (estimate generated based on a population of exporters of 15 European countries).…”

Section: Introductionmentioning

confidence: 99%

Do domestic market characteristics influence firms' export intensity?

Forte

Carvalho

2022

EMJB

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PurposeThe purpose of this study is to analyze the influence of the firms' external environment on their export intensity. More specifically, it assesses whether domestic market characteristics such as domestic demand and general export environment related to tradability across borders affect firms' export intensity.Design/methodology/approachThe authors use a sample of 29,266 firms from nine European countries, for the period of 2010–2016, and test several estimation methods (random effects models, Tobit models, and Heckman's selection models).FindingsResults show that external factors such as domestic demand and ease of trade across borders are important determinants of firms' export intensity. Moreover, results reveal that firm's internal characteristics such as age, size and productivity also play an import role.Originality/valueStudies about the influence of the firms' external environment on firms' export intensity are scarce because most of them are confined to a single country context. In this way, the present study contributes to the body of knowledge on the influence that external factors can have on firms' export performance by analyzing firms from nine European countries, which has important policy implications.

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Assessing European Firms' Exports and Productivity Distributions: The CompNet Trade Module

Cited by 16 publications

References 37 publications

Productivity and wage effects of firm‐level upstreamness: Evidence from Belgian linked panel data

Productivity and wage effects of firm‐level upstreamness: Evidence from Belgian linked panel data

Wage differences according to workers' origin: The role of working more upstream in GVCs

Do domestic market characteristics influence firms' export intensity?

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