This paper analyses linkage between exporting companies` productivity. After having provided an overview of the recent theoretical and empirical literature we analyze empirical studies about difference from export and nonexport companies in term of productivity. This paper uses the productivity analysis methodology and empirical methods. Using the productivity analysis method and panel data for Latvian manufacturing firms, we estimate the correlation between export based companies and labor productivity level. We expect that companies export activities are crucial for labor productivity growth. The main hypothesis point is concerned about more productive companies involved into export markets. The reason for this is that selling goods in foreign countries involves additional costs and more competiveness skills. Additional extra costs that includes marketing, transportation costs, distribution, the cost of personnel involves high skills to manage foreign markets, or production costs. These costs provide an entry barrier that less successful and competiveness lack firms cannot overcome.