Firms’ exporting and importing activities: is there a two-way relationship?

Chiara Franco, David Aristei, Davide Castellani

Research output: Contribution to journalArticle

53 Citations (Scopus)

Abstract

The literature on firm heterogeneity and trade has highlighted that most trading firms tend to engage in both importing and exporting activities. This paper provides some evidence that helps understanding to what extent this is the result of a two-way relationship. Using firm-level data for a group of 27 Eastern European and Central Asian countries from the World Bank Business Environment and Enterprise Performance Survey (BEEPS) over the period 2002–2008, we estimate a bivariate probit model of exporting and importing. After controlling for size (and other firm-level characteristics) we find that firms’ exporting activity does not increase the probability of importing, while the latter has a positive effect on foreign sales. This effect is mainly channeled through an increase in firm productivity and product innovation.
Original languageEnglish
Pages (from-to)55-84
Number of pages30
JournalReview of World Economics
Volume149
Publication statusPublished - 2013

Keywords

  • Eastern European and Central Asian countries
  • Export
  • Firm heterogeneity
  • Import

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