Germany, this paper presents the first comprehensive evidence on the relationship between exports and profitability. It … selfselection of more profitable firms into export markets. Due to the sampling frame of the data used we cannot test the hypothesis … the whole range of the export-sales ratio. Only firms that generate 90 percent and more of their total sales abroad do not …

reason for this result is that most previous studies are restricted to analysing the relationship between a firm's export … status and the growth of its labour productivity, using the firms' export status as a binary treatment variable and comparing … score (GPS) methodology that allows for continuous treatment, that is, different levels of the firms' export activities …