DISCUSSION PAPER SERIES Globalization and Firm Performance

The remaining columns show the ratio of the respective category means to the average shown in the first column. [...] The association between being larger and exporting more is further reinforced by the path of the blue line depicted in Figure 2a, which shows that the top 10% of the size distribution of our data accounts for about 85% of total exports. [...] By including the lag of the dependent variable in our regression, any changes already taking place in the firm prior to the change of status 4However, it is important to note that the FE specification captures only within firm changes, so it has the drawback of neglecting cross-firm differences. [...] In the case of foreign ownership and export market participation, the gains of one channel are attenuated by the other and an interpretation is that having taken the step to be an exporter or foreign-owned, there is a smaller gain size- wise to be both foreign and exporter. [...] Finally, we find that firms in the first quartile of the size distribution (roughly span- ning micro and small firms) are the ones that gain the most in terms of the effects of globalization on performance, particularly regarding productivity and wages.