Decision to Export Results from by Greater Productivity in the Domestic Market

In view of increasing economic globalisation, it is important for national economies to have as many internationally competitive businesses as possible. However, not every company is able to successfully enter the export market.

It is questionable, as to whether firms that are unable to enter the export market under their own steam would be able to continue operations abroad without constant governmental support.

A study carried out by the Centre for European Economic Research (ZEW) in Mannheim and The University of Milan shows that especially in Germany, it is the most productive manufacturing companies, which pursue entry into international markets. A commercial presence in international markets, however, does not lead to an increase in corporate competitiveness. Successful German exporters tend to have competitive advantages, in terms of their productivity, over competitors prior to commencing international operations; such advantages are not gained as a result of internationalisation.

The study is based on data from the Mannheim Innovation Panel for manufacturing industries, a study conducted by ZEW on an annual basis among a representative selection of firms in Germany.

Contact

Dr. Katrin Hussinger, Phone: 0621/1235-194, E-Mail: hussinger@zew.de

Jens Matthias Arnold, Phone: +39 328/7465190, E-Mail: jens.arnold@uni-bocconi.it