Does Export Yield Productivity and Markup Premiums? Evidence from the Japanese manufacturing industry

This paper examines the relationship between productivity, markups, and development of foreign markets using a rich firm-level dataset of the Japanese manufacturing industry during the period 2000-2010. Using estimates of firm-specific productivity and markups, we investigate if the development of foreign markets through exports has a premium for their market performance. Our study confirmed that exports have significant productivity and markup premiums. In addition, export premiums vary across the destination markets. Exports to Asia show a significant productivity premium while other markets do not. For markups, exports to Asia and North America have a significant premium. These findings imply that both productivity and markups should be considered in assessing the development of foreign markets.

Published: Atsuyuki Kato, 2015. "Does Export Yield Productivity and Markup Premiums? Evidence from the Japanese manufacturing industry," International Review of Research in Emerging Markets and the Global Economy, Vol. 1(1), pp. 273-285.
http://globalbizresearch.org/files/s424_irrem_atsuyuki-kato-123845.pdf