This paper uses a rich data set of Slovenian manufacturing firms active in the period 1994-2002 that contains information on outward FDI and exports to different markets in order to test three empirical hypotheses that relate the decision for outward FDI to total factor productivity. First, the...

<heading format="display" id="h1" implicit="yes" level="1">Abstract</heading> Firm productivity and export decisions are closely related to innovation activity. Innovation may play a more important role in the decision to start exporting, and successful exporting may drive process innovation. This suggests that the causality between innovation and exporting may...