3543504

2584

In this paper we empirically investigate the relationship between investments in environmentally oriented equipment and firmsʹ export performance. We adopt a two-stage model where we first estimate the impact of green tangible investment strategies (GTIS) on the level of productive efficiency (TFP), and then assess whether induced productivity influences the propensity and the intensity of exports. We rely on a rich firm-level dataset on Italian manufacturing. Our results show that firms with higher productivity, induced among other factors by green investments combining environmental and increased revenue objectives, achieve a higher export performance. In particular, GTIS-enhanced TFP affects the probability of exporting in foreign markets characterized by more stringent environmental regulation. Our evidence supports a ‘green-based’ firm heterogeneity argument.

150

Export , Total Factor Productivity , Green tangible investment strategy , Firm heterogeneity

Studia Iranica

161

161