Exporting and Environmental Performance: A Firm-level Productivity Analysis

Abstract

The objective of this paper is to study empirically the relationship between export orientation and firms’ environmental performance from different perspectives of trade theory. On the one hand, productivity heterogeneity is analysed within the new trade-theoretical framework. The approach followed is to determine firm-level productivity components, including an environmental productivity indicator (as a performance measure) and taking as reference the Spanish food industry. On the other hand, from the traditional comparative advantage perspective, this study also develops an export performance model to evaluate the effect of technology, environmental variables and factor endowment on exporting. The results show greater environmental productivity and corporate efficiency for export-oriented firms. Our findings also determine the positive effect on firms’ export intensity of environmental performance as a factor of specialisation and technology proficiency.

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