Living with Lower Productivity Growth: Impact on Exports

09/01/2018

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Filippo di Mauro, Bernardo Mottironi, Gianmarco Ottaviano, Alessandro Zona-Mattioli | Peterson Institute for International Economics

Introduction

This paper investigates the impact of sustained lower productivity growth on exports, by looking at the role of the productivity distribution and allocative efficiency as drivers of export performance. It follows and goes beyond the work of Barba Navaretti et al. (2017), analyzing the effects of productivity on exports depending on the dynamics of allocative efficiency. Low productivity growth is a well-documented stylized fact in Western countries and possibly a reality likely to persist for some time. What could be the impact of persistent sluggish growth of productivity on exports? To shed light on this question, this paper examines the relationship between the productivity distribution of firms and sectoral export performance…

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