Firm heterogeneity and exports in the Netherlands: Identifying export potential
We employ a large micro-dataset for Dutch firms both in services and manufacturing for the period 2010-2014. Our findings are threefold. First, high productivity is an important, but not a sufficient condition for exporting. Firm size (substitute for productivity), import status, and foreign ownership are also important. Second, firm location is crucial. A location in peripheral areas prevents high productive firms from exporting; especially a location in the Northern part of the Netherlands reduces the probability to export. Third, our set-up identifies individual firms that are potential exporters.