Exporting raises firm productivity: Bank of Israel paper


A Bank of Israel paper, published on Wednesday, finds evidence that exporters in Israel are more productive than non-exporters.

Lior Gallo, the paper's author, uses data on Israeli manufacturing firms from 1996 to 2003 to estimate the relationship between exporting and productivity. In order to analyse the difference in performance between exporters and non-exporters, the author explores the causal link between export status and firm performance.

Gallo finds that the total factor productivity of

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