Chin Hee HAHN () (Korea Development Institute, Korea) Chang-Gyun PARK (College of Business Administration, Chung-Ang University, Korea)
Abstract
The paper analyzes whether firms that start exporting become more productive utilizing recently developed sample matching procedures to control the problems from self-selection into the export market. We use plant level panel data on Korean manufacturing sector from 1990 to 1998. We find clear and robust empirical evidence in favor of the learning-by-exporting effect; total factor productivity differentials between exporters and their domestic counterparts arises and widens during several years after export market entry. We also find that the effect is more pronounced for firms that have higher skill-intensity, higher share of exports in production, and are small in size. Overall, the evidence suggests that exporting is one important channel through which domestic firms acquire accesses to advanced knowledge and better technology. Also, the stronger learning-by-doing effect for firms with higher skill-intensity seems to support the view that "absorptive capacity" matters to receive knowledge spillovers from exporting activity.
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Publisher Info
Article provided by Economic Research Institute for ASEAN and East Asia in its journal ERIA Discussion Paper Series.
Find related papers by JEL classification: F14 - International Economics - - Trade - - - Country and Industry Studies of Trade O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development O19 - Economic Development, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations