Exports and Firm Productivity in Turkish Manufacturing: An Olley-Pakes Estimation
AbstractIn this study, we examine the effects of exporting on the industry productivity following a two-step procedure using 4-digits industry level data of Turkish manufacturing sectors for the period 2003-2008. First, robust total factor productivity variable is obtained from a Cobb-Douglas production function following the semiparametric method of Olley and Pakes (1996), since productivity estimation by approximating the weighted sum of the inputs by OLS may suffer from simultaneity and selection biases. In the second stage of empirical analysis, the relationship between productivity and being net-exporter is estimated by fixed-effects panel data method. Results show that, productivity level for net-exporters is lesser than the level for net-importers indicating that industries are more prone to import and more competitive on import markets. We also show that when simultaneity and selection biases are not controlled for, the coefficient for the labor input is biased upward and the coefficient for the capital stock is biased downward.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Econjournals in its journal International Journal of Economics and Financial Issues.
Volume (Year): 4 (2014)
Issue (Month): 2 ()
Contact details of provider:
Web page: http://www.econjournals.com
Semiparametric estimation; total factor productivity; exports;
Find related papers by JEL classification:
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Aguirregabiria, Victor, 2009. "Econometric Issues and Methods in the Estimation of Production Functions," MPRA Paper 15973, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ilhan Ozturk).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.