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Exporting and firm productivity: evidence for Egypt and Morocco

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  • Inmaculada Martínez-Zarzoso

Abstract

This paper investigates the link between exporting and importing activities and firm performance using a rich dataset on Egyptian and Moroccan firms. We test the export premium, self-selection and learning-by-exporting hypotheses using a number of firm characteristics. Our analysis also includes importing activities as a source of learning and considers their effects on productivity changes. A differences-in-differences matching estimator is used to address the endogeneity bias of target variables. The main results for Egyptian firms echo those reported for other countries using firm-level data, namely exporters are larger and more productive than non-exporters. In contrast, Moroccan exporters and non-exporters are strikingly similar. More specifically, no evidence is found of pre or post-entry differences in labour productivity for Moroccan firms.

Suggested Citation

  • Inmaculada Martínez-Zarzoso, 2020. "Exporting and firm productivity: evidence for Egypt and Morocco," Middle East Development Journal, Taylor & Francis Journals, vol. 12(1), pages 84-100, January.
  • Handle: RePEc:taf:rmdjxx:v:12:y:2020:i:1:p:84-100
    DOI: 10.1080/17938120.2020.1723297
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