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

This paper analyzes the relationship between export status and productivity in a major service exporter, Spain, during 2001-2007. I find that exporters in the services sector are 37% 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. The results also show that exporting increases productivity growth; however, this positive shock vanishes quickly.