Changing export status and firm performance: evidence from UK small firms

The export premium is measured for a sample of 1940 small-sized UK manufacturing firms over the period 1994-2000 by evaluating the performance of entrants versus exiters in the foreign markets. It is found that new exporters witnessed a substantial increase in their employment, wages, sales and productivity growth rates compared to non-exporters. On average the estimated export premium coefficient varied from 5% in productivity to 1% in wages. Companies that interrupt the exporting activity suffered significant losses in employment, employees' wages, director's wages, sales and productivity. The negative estimated impact on the growth rates vary from -7% for director's wage to -3% in employment and productivity.