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Wiener Institut für Internationale Wirtschaftsvergleiche

The Vienna Institute for International Economic Studies

www.wiiw.ac.at

FIW-Study

Characteristics of exporting and non-exporting

firms in Austria

Johannes Pöschl – Robert Stehrer – Roman Stöllinger

financed by Federal Ministry of Economy, Family and Youth

FIW Workshop, 06.04.2010

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Content

Introduction

Dataset

Export Participation

Export Premia- Descriptive Analysis

- Econometric Results

Summary

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Stylised facts

EU27 exports: from 2.21 trillion (1999) to 4.01 trillion (2008)

NMS12 exports: from 112 billion (1999) to 441 billion (2008)

Only a fraction of all firms in an industry export (firm heterogeneity)

Export participation varies substantially across industries

(Bernard, Jensen, Schott – 2005)

Firms engaged in export activities are larger and more productive

(Eaton, Kortum and Kramarz – 2004)

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Theory: Exporters vs. Non-exporters

profit

productivity

ExportersNon-

Exportersfixed costs

Exporters face fixed costs of exporting and additional trading costs

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Dataset

Source: Statistik Austria

Selected sample: manufacturing industries 2002-2006

Firm level data from- Leistungs- und Strukturerhebung

covers most firm characteristics2006: 28712 firms

- Konjunkturstatistikgives information about the export status2006: 6326 firms (93.7% of sales)

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First impressions from the data

56% of the firms in the sample export in 2006

Modest rise in export participation from 54% in 2002

In comparison: Austrias manufacturing exports rose

from 78 billion (2002) to 104 billion (2006)

Intensive margin more important- Intensive margin: rise in exports of firms already exporting

- Extensive margin: number of exporters increases

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Export Participation of Austrian firms (2006)

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Export Concentration

1%, 5% and 10% of manufacturing firms account for

42%, 74% and 87% of the exports respectively

percentage of firms (ranked by export sales)

percentage of exports42%

74%

87%

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Size comparison – average sales per firm

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Size premia of exporters (non-exporters=1)

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Performance premia – labour productivity

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Labour productivity by export intensityfirms by exports in % of turnover

NACE Industry Non-exporter <5% 5-30% 30-50% >50%

15 Food and beverages 68.0 178.4 232.9 309.7 275.1

17 Textiles 76.8 77.3 94.8 94.0 136.8

18 Wearing apparel 45.9 59.1 87.4 92.9 114.4

19 Leather 91.6 73.5 152.2

20 Wood 86.7 107.7 128.2 182.0 223.7

21 Pulp and paper 181.3 100.8 149.3 181.5 766.2

22 Publishing and printing 107.7 175.4 149.0 152.9 193.1

24 Chemicals 178.5 218.3 163.9 232.2 1042.0

25 Rubber and plastic products 113.4 102.8 112.8 154.8 160.2

26 Non-metallic mineral products 152.8 139.9 161.2 162.3 147.5

27 Basic metals 159.2 85.5 194.1 278.7 285.0

28 Fabricated metal products 96.8 103.0 117.6 140.9 177.8

29 Machinery and equipment 114.7 103.0 129.2 147.5 183.9

30 Office machinery and computers 365.4

31 Electrical machinery 129.3 111.8 129.8 153.6 199.3

32 Radio, TV, communication 119.2 155.7 151.3 194.5

33 Precision & optical instruments 57.4 76.0 79.4 113.6 148.9

34 Motor vehicles 1734.0 122.0 157.8 271.3 231.1

35 Other transport equipment 164.6 293.6

36 Manufactures n.e.c. 63.2 72.2 82.4 102.1 115.7

37 Recycling 247.2 322.6 271.5

15-37 Total manufacturing 91.8 129.6 136.6 165.7 244.1

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Labour productivity and capital intensitity

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Econometric results – implied export premia

Variable Sales Employees Wage sum Gross investment

EXP 3.564*** 2.164*** 2.662*** 3.751***

EXPINT <5% 2.052*** 1.530*** 1.730*** 2.140***

EXPINT 5-30% 2.815*** 1.842*** 2.217*** 2.924***

EXPINT 30-50% 4.125*** 2.284*** 2.889*** 4.315***

EXPINT >50%   7.106***   3.456***   4.627***   7.637***

Variable Labour productivity Labour productivity Wage Investment intensity

  (per employee) (per hours worked) (per employee) (per employee)

EXP 1.659*** 1.623*** 1.230*** 1.719***

EXPINT <5% 1.353*** 1.334*** 1.132*** 1.399***

EXPINT 5-30% 1.527*** 1.487*** 1.203*** 1.571***

EXPINT 30-50% 1.797*** 1.765*** 1.265*** 1.868***

EXPINT >50%   2.104***   2.044***   1.340***   2.195***

Coefficient of non-exporters = 1, time and industry dummies included

approach following Bernard, Jensen (1999)

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Summary

Austrian exporters make up for 87% of employment and

94% of sales (small open economy)

Export participation has only increased slightly in the period

2002-2006

Exporting firms …- are bigger in terms of investment, employment and sales

- are more capital intensive and exhibit higher labour productivity

Employees participate from export premium (capital-skill

complementarity)

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Thank you

for your attention!