Emerging Tech

Are Export Premia Robust To Innovation Statistics?

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Executive Summary

This paper analyses to what extent innovation contributes to the productivity advantage of exporters over their non exporting counterparts, namely the export premium. Using a dataset of French firms' data, the authors start by performing non parametric tests on TFP distributions for different groups of firms characterized by their ex-port and innovation behavior. They show that the TFP distributions of exporters and innovators stochastically dominate those of non exporters and of non innovators, re-spectively. They pursue with OLS regressions and show that the export premium is robust to the introduction of innovation statistics. However, the contribution of innovation abilities to the export premium is small: once controlled for the size, ownership, and innovation abilities of the firm, the residual export premium is still around 3%.

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