Firm-level productivity and international expansion of firms from the Lodz Voivodeship

Abstract

The paper investigates the link between firm-level productivity and internationalization (through exports, imports and FDI) in the Lodz Voivodeship, Poland. Two hypotheses have been tested –self-selection and learning by internationalization. It has been found that productivity may affect import and FDI decisions of firms, while there is no evidence of such an effect regarding exports. At the same time, there is no proof for learning, suggesting that within the timeframe of the analysis firms from the Lodz Voivodeship do not experience productivity gains due to international trade or investment.