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Firms’ International Status and Heterogeneity in Performance:

Evidence from Italy


Lorenzo Casaburi

- Valeria Gattai - G. Alfredo Minerva*

University of Bologna

 

University of Bologna
and Harvard University

  University 'L. Bocconi',
Milan

We revisit the evidence about firms’ performance and their international status in a large sample of Italian enterprises. Three
results stand out. First, firms engaging in foreign production of final goods, in addition to export activities, are more productivethan firms that only export abroad. Second, firms engaging in final goods off-shoring are more productive than firms engaging ininputs off-shoring. Third, the productivity dynamics of exporters is not any better than non-exporters’ one. Our results support that the better performance of globally engaged firms is chiefly due to the selection caused by the fixed costs associated to internationaloperations. [JEL Classification: F10; F20; L10; L20; L60]
 



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* casaburi@fas.harvard.edu
* valeria.gattai@uni-bocconi.it
* ga.minerva@unibo.it


The Authors thank Carlo Altomonte and Gianmarco Ottaviano for their guidance and Luca Lambertini for useful suggestions. This paper is prepared as a part of the Micro-Dyn research project, funded by the European Union under the VI Framework Programme. Financial support from the Italian Ministry for University and Research is also gratefully acknowledged. All remaining errors are attributable to the Authors.

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