Exporting services boosts productivity, leading to higher gains from trade!
This paper looks at how firms in Turkey benefit from improving productivity and exporting services. They used data from 2003-2011 to see if exporting services helps firms become more productive. The results show that firms exporting both goods and services are more productive than others. Firms that switch from exporting goods to exporting both goods and services also see a productivity boost. Interestingly, firms that export services don't necessarily see a productivity increase. Overall, the study found that exporting both goods and services can lead to higher productivity for firms in Turkey.