Firm Productivity and Exports: Evidence from Ethiopian Manufacturing
AbstractThis paper examines the causal relationship between exporting and productivity using plant-level panel data for Ethiopian manufacturing. We trace the trajectory of total factor productivity and other productivity measures of groups of firms classified by their export history. We tested learning-by-exporting using a one-step system-general method of moments approach with the export-status included directly in the production function. We found strong evidence of not only self-selection but also learning-by-exporting. Depending on the specification previous exporting appears to have shifted the production function by 15-26 per cent. Exporters had on average three times more employees, and paid 1.6 times higher average wage than non-exporters.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Journal of Development Studies.
Volume (Year): 45 (2009)
Issue (Month): 10 ()
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Other versions of this item:
- Bigsten, Arne & Gebreeyesus, Mulu, 2008. "Firm Productivity and Exports: Evidence from Ethiopian manufacturing," Working Papers in Economics 303, University of Gothenburg, Department of Economics.
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
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