1. wiiw 1 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

2. wiiw 2 Content Introduction Dataset Export Participation Export Premia -Descriptive Analysis -Econometric Results Summary

3. wiiw 3 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)

4. wiiw 4 Theory: Exporters vs. Non-exporters profit productivity Exporters Non- Exporters fixed costs Exporters face fixed costs of exporting and additional trading costs

5. wiiw 5 Dataset Source: Statistik Austria Selected sample: manufacturing industries 2002-2006 Firm level data from -Leistungs- und Strukturerhebung covers most firm characteristics 2006: 28712 firms -Konjunkturstatistik gives information about the export status 2006: 6326 firms (93.7% of sales)

6. wiiw 6 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

7. wiiw 7 Export Participation of Austrian firms (2006)

8. wiiw 8 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 exports 42% 74% 87%

9. wiiw 9 Size comparison – average sales per firm

10. wiiw 10 Size premia of exporters (non-exporters=1)

11. wiiw 11 Performance premia – labour productivity

12. wiiw 12 Labour productivity by export intensity firms by exports in % of turnover NACEIndustryNon-exporter<5%5-30%30-50%>50% 15Food and beverages68.0178.4232.9309.7275.1 17Textiles76.877.394.894.0136.8 18Wearing apparel45.959.187.492.9114.4 19Leather91.673.5152.2 20Wood86.7107.7128.2182.0223.7 21Pulp and paper181.3100.8149.3181.5766.2 22Publishing and printing107.7175.4149.0152.9193.1 24Chemicals178.5218.3163.9232.21042.0 25Rubber and plastic products113.4102.8112.8154.8160.2 26Non-metallic mineral products152.8139.9161.2162.3147.5 27Basic metals159.285.5194.1278.7285.0 28Fabricated metal products96.8103.0117.6140.9177.8 29Machinery and equipment114.7103.0129.2147.5183.9 30Office machinery and computers365.4 31Electrical machinery129.3111.8129.8153.6199.3 32Radio, TV, communication119.2155.7151.3194.5 33Precision & optical instruments57.476.079.4113.6148.9 34Motor vehicles1734.0122.0157.8271.3231.1 35Other transport equipment164.6293.6 36Manufactures n.e.c.63.272.282.4102.1115.7 37Recycling247.2322.6271.5 15-37Total manufacturing91.8129.6136.6165.7244.1

13. wiiw 13 Labour productivity and capital intensitity

14. wiiw 14 Econometric results – implied export premia VariableSalesEmployeesWage sumGross investment EXP3.564***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*** VariableLabour productivity WageInvestment intensity (per employee)(per hours worked)(per employee) EXP1.659***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)

15. wiiw 15 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)

16. wiiw 16 Thank you for your attention!