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Exports, firm size, and firm dynamics

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Abstract

This paper explores the relationships between exports, firm size, and firm dynamics. It is based on a unique longitudinal data set collected at the establishment level, covering some 7000 manufacturing German firms. We present stylized facts on exports and firm size, showing that the probability that a firm is an exporter increases with firm size; however, there are many successful exporters among small firms, and non-exporters among larger firms, too, while most of the exports are from the top size groups of firms. An econometric study shows a picture that is consistent with theoretical considerations: The impact of firm size on exports is positive but decreasing, while human capital intensity, domestic market share, and advanced technology all have a positive influence on the export performance of a firm. Firm growth and export performance are positively related, as is expected from a model of a price-discriminating monopolist.

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Authors and Affiliations

  1. University of Lüneburg, D-21332, Lüneburg, Germany

    Joachim Wagner

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  1. Joachim Wagner
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Wagner, J. Exports, firm size, and firm dynamics. Small Bus Econ 7, 29–39 (1995). https://doi.org/10.1007/BF01074314

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  • DOI: https://doi.org/10.1007/BF01074314

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