Does international trade provide incentives for efficient behaviour of Russian manufacturing firms?

This article studies the relationship between exporting and past productivity at the firm level. Panel data from two surveys of Russian manufacturing firms conducted in 2005 and 2009 are used. We analyse the difference between continuing and new exporters, and study how drivers to exporting differ i...

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Bibliographic Details
Published in:Post-communist economies 2012-06, Vol.24 (2), p.277-289
Main Authors: Golikova, Victoria, Gonchar, Ksenia, Kuznetsov, Boris
Format: Article
Language:English
Subjects:
C.I.S
Developed countries
Eastern Europe
Exporters
Exports
Foreign trade
International trade
Manufacturers
Manufacturing
Panel data
Productivity
Studies
U.S.S.R
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Summary:This article studies the relationship between exporting and past productivity at the firm level. Panel data from two surveys of Russian manufacturing firms conducted in 2005 and 2009 are used. We analyse the difference between continuing and new exporters, and study how drivers to exporting differ if firms export to CIS or high-wage advanced countries. We find empirical evidence for the self-selection hypothesis: both continuing and new exporters are more productive and larger than non-exporters and export quitters. Path dependence in the nature of foreign trade ceased to exist: serving the markets of the former Soviet Union requires the same productivity advantage as exporting to the developed countries.
ISSN:1463-1377
1465-3958
DOI:10.1080/14631377.2012.675163