Export and FDI premia among services firms in the developing world

Abstract

There  is extensive econometric evidence showing that goods exporters are larger, more productive, and pay higher wages than nonexporters (‘export premia’). However, evidence for firms in the services sector is much more limited. This article uses firm-level data from a range of developing countries to show that export premia also exist for services firms in the developing world. Internationalized services firms display similar characteristics to internationalized manufacturers: they are larger, employ more workers, pay higher wages, invest more heavily and grow faster.

Keywords:

• services
• developing countries
• trade in services
• FDI in services
• firm-level data

JEL Classification:

• F14
• L80
• O24