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Interaction between exporting and productivity at firm level : Evidence from the UK chemical industry

This paper investigates the interaction between exporting and productivity at firm level , using a panel of firms in UK chemical industry which is highly technology intensive and the largest UK manufacturing exporter. We find exporters are on average smaller but more productive than non-exporters. Applying empirical techniques from Bernard and Jensen(2001) and Kraay(1999), we find the superior productivity performance among exporters is caused by both self-selection and learning-by-exporting effect. In contrast to other studies, we find learning effect is significantly positive among new entrants, weaker for earlier entrants and negative for established exporters.