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The views expressed in this presentation are the views of the author and do not necessarily reflect the views or policies of the Asian Development Bank
Institute (ADBI), the Asian Development Bank (ADB), its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy
of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with
ADB official terms.
1
Outline
1. Introduction and Motivation
3. Results
2
1. Introduction and Motivation
250 Bangladesh is a rapidly
developing economy
Income growth
200
Poverty reduction
Real GNI Per Capita (2000 = 100)
Structural transformation
150
3
2. Research Questions and Methodology
In Melitz (2003) style models, large 70.000
As second-tier suppliers.
10.000
Direct Indirect
4
2. Research Questions and Methodology
Concrete research questions:
What role does firm size play in export decisions at the
extensive and intensive margins?
What role do imports of intermediates and the presence of a
foreign investor have on export decisions at the extensive and
intensive margins?
Is there any evidence of different effects by firm size of
imported intermediates and inward FDI on export behavior?
5
2. Research Questions and Methodology
1. Estimate TFP using Levinsohn-Petrin and Olley-Pakes.
Use labor productivity (VA/worker) as a robustness
check.
6
3. Results
Olley-Pakes Levinsohn-Petrin
(0.000) (0.000)
(0.000) (0.000)
(.) (.)
N 502 1163
R2
7
3. Results
(1) (2) (3)
(0.106) (0.546)
(0.093) (0.503)
yees)
(0.000) (0.000)
s)
mployee)
8
3. Results
2.5
20
15
1.5
10
5
0.5
0 0
Small Medium Large Small Medium Large
9
4. Conclusion and Policy Implications
In line with the literature, firm size is positively linked to
export propensity and intensity.
10