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Do Firms Increase Productivity in Order to Become Exporters?

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  • Ricardo A. López

Abstract

Recent studies find that exporters are more productive than non-exporters and that entry into exporting does not increase firms' productivity. Thus, firms self-select into foreign markets. This paper examines productivity before entry into exporting. Using Chilean plant-level data, we find that productivity and investment increase before plants begin to export. Moreover, productivity of entrants to exporting, but not that of non-exporters and exporters, increases in response to increases in foreign income, before entry but not after that. The results suggest that the productivity advantage of future exporters may be the result of firms increasing their productivity in order to export. Copyright (c) Blackwell Publishing Ltd and the Department of Economics, University of Oxford, 2009.

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Bibliographic Info

Article provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics and Statistics.

Volume (Year): 71 (2009)
Issue (Month): 5 (October)
Pages: 621-642

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Handle: RePEc:bla:obuest:v:71:y:2009:i:5:p:621-642

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Citations

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Cited by:
  1. Bürker, Matthias & Franco, Chiara & Minerva, G. Alfredo, 2013. "Foreign ownership, firm performance, and the geography of civic capital," Regional Science and Urban Economics, Elsevier, vol. 43(6), pages 964-984.
  2. Armando Silva & Óscar Afonso & Ana Paula Africano, 2010. "Do Portuguese manufacturing firms self select to exports?," FEP Working Papers 371, Universidade do Porto, Faculdade de Economia do Porto.
  3. Ngo Van Long & Horst Raff & Frank Stähler, 2008. "Innovation and Trade with Heterogeneous Firms," Kiel Working Papers 1430, Kiel Institute for the World Economy.
  4. Asier Minondo, . "Exporters of services in Spain," Working Papers 2011R04, Basque Institute of Competitiveness.
  5. Minondo, Asier, 2012. "The relationship between export status and productivity in services: A firm-level analysis for Spain," MPRA Paper 43225, University Library of Munich, Germany.
  6. Marco Grazzi, 2012. "Export and Firm Performance: Evidence on Productivity and Profitability of Italian Companies," Journal of Industry, Competition and Trade, Springer, vol. 12(4), pages 413-444, December.
  7. Vincent Mok & Godfrey Yeung & Zhaozhou Han & Zongzhang Li, 2010. "Export orientation and technical efficiency: clothing firms in China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 31(7), pages 453-463.
  8. Eleonora Di Maria & Roberto Ganau, 2014. "Driving a firmÕs export propensity and export intensity: the role of experience, innovation, and international marketing strategy," "Marco Fanno" Working Papers 0175, Dipartimento di Scienze Economiche "Marco Fanno".
  9. Kent Eliasson & Pär Hansson & Markus Lindvert, 2012. "Do firms learn by exporting or learn to export? Evidence from small and medium-sized enterprises," Small Business Economics, Springer, vol. 39(2), pages 453-472, September.

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