wiiw 1 Wiener Institut für Internationale Wirtschaftsvergleiche The Vienna Institute for International Economic Studies 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,

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

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)

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

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

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

wiiw 7 Export Participation of Austrian firms (2006)

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%

wiiw 9 Size comparison – average sales per firm

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

wiiw 11 Performance premia – labour productivity

wiiw 12 Labour productivity by export intensity firms by exports in % of turnover NACEIndustryNon-exporter<5%5-30%30-50%>50% 15Food and beverages Textiles Wearing apparel Leather Wood Pulp and paper Publishing and printing Chemicals Rubber and plastic products Non-metallic mineral products Basic metals Fabricated metal products Machinery and equipment Office machinery and computers Electrical machinery Radio, TV, communication Precision & optical instruments Motor vehicles Other transport equipment Manufactures n.e.c Recycling Total manufacturing

wiiw 13 Labour productivity and capital intensitity

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)

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 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)

wiiw 16 Thank you for your attention!