Productivity, Networks, and Export Performance: Evidence from a Cross-country Firm Dataset

Authors

  • Luca Antonio Ricci,

    Corresponding author
    1. International Monetary Fund, Research Department, USA
      Ricci: International Monetary Fund, Research Department, 700 19th Street, N.W., Washington DC 20431, USA. E-mail: LRicci@imf.org. Trionfetti: Aix-Marseille School of Economics, Aix-Marseille Université, 2, rue de la Charité, 13236 Marseille cedex 02, France. E-mail: Federico.Trionfetti@univ-amu.fr.
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  • Federico Trionfetti

    Corresponding author
    1. Aix-Marseille School of Economics, Aix-Marseille Université, France
      Ricci: International Monetary Fund, Research Department, 700 19th Street, N.W., Washington DC 20431, USA. E-mail: LRicci@imf.org. Trionfetti: Aix-Marseille School of Economics, Aix-Marseille Université, 2, rue de la Charité, 13236 Marseille cedex 02, France. E-mail: Federico.Trionfetti@univ-amu.fr.
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    • We thank Donald Davis, Giuseppe De Arcangelis, Pravin Krishna, Peter Schott, the referees, and the participants in the conference in honor of Giancarlo Gandolfo for very helpful discussions. Fei Liu, Maria Victoria Fazio, and Utsav Kumar provided excellent research assistance. A special thank to Mary Hallward-Driemeier for pointing us to this rich dataset. This paper should not be reported as representing the views of the IMF. The views expressed in this paper are those of the authors and do not necessarily represent those of the IMF or IMF policy.


Ricci: International Monetary Fund, Research Department, 700 19th Street, N.W., Washington DC 20431, USA. E-mail: LRicci@imf.org. Trionfetti: Aix-Marseille School of Economics, Aix-Marseille Université, 2, rue de la Charité, 13236 Marseille cedex 02, France. E-mail: Federico.Trionfetti@univ-amu.fr.

Abstract

This paper uses a newly assembled multi-country multi-industry firm-level dataset to test the effect of productivity and networking on the export probability of firms. Results are in line with the new-new trade theory and with the literature on the information value of networks. Firms are more likely to export if they are more productive, larger, and if they benefit from foreign networks (ownership and financial linkages), domestic networks (chamber of commerce, links to regulation), and communication networks (E-mail, internet). Firms bear a lower probability of exporting if they are affected by state ownership or unionization networks. Overall, firms with better network connections by one standard deviation enjoy a 15% higher probability of exporting.

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