Exports , productivity , sorting , information technology , firm-level data
Abstract:
Using a unique German firm-level data set, we provide empirical evidence
for a productivity sorting along two dimensions: international activity and
technology choice. We consider domestic and exporting firms and measure
technology choice by firms’ actual use of advanced information technology
(IT). For manufacturing firms, the observed sorting pattern is consistent
with recent theories of heterogeneous firms and technology choice: Only the
relatively more productive ones among internationally active firms are also
highly technology intensive. For service sector firms we find similar evidence,
yet the results seem to depend on the trade cost of certain services. In general,
recent theoretical advances regarding trade and technology adoption thus
seem to better fit the manufacturing sector.
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