Pure-Exporter Premiums
Keywords:
pure exporters, export intensity, pure exporter premiumAbstract
In this study, I explore the concept of the “pure-exporter premium” and estimate the differential characteristics of pure exporters—firms that sell at least 90 percent of their output to foreign markets—compared to general exporters. Using Thailand’s firm-level census data for manufacturing firms, the empirical analysis uncovers positive pure-exporter premiums in terms of total output, value added, and export value, alongside more extensive use of both overall labor and labor in production and a greater reliance on imported materials. Conversely, the analysis finds negative pure-exporter premiums in terms of firm productivity, firm age, capital investment, the capital-to-labor ratio, and the employment of nonproduction labor. However, the investigation does not find evidence for statistically significant differences in the skill composition of labor, the use of intermediate inputs, wages, or the total labor compensation between the two groups of exporters.
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