The relationship between export status and productivity in services: A firm-level analysis for Spain

Abstract

This paper analyses the relationship between export status and productivity in a major service exporter, Spain, during 2001-07. I find that exporters in the services sector are 45 percent more productive than non-exporters. This productivity premium is larger for firms that supply non-internet-related services than for firms that supply internet-related services. The results show that exporters were more productive than non-exporters before beginning to export, and also that exporting increases productivity growth; however, this positive shock vanishes quickly.