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Learning by exporting or self-selection into exporting?

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  • Youssouf Kiendrebeogo

Abstract

This paper explores the export-productivity relationship using firm-level data from Egypt over the 2003–2008 period. Previous studies using data from developed countries suggest that self-selection is the main driver of the exporter premium. Using a propensity-score matching difference-in-difference approach, we find that both labor productivity and total factor productivity are significantly higher for exporters than for non-exporters. On average, labor productivity and total factor productivity are, respectively, 43% and 61% higher for exporting firms than for domestically-oriented firms. Accounting for the level of development of destination countries, we find that this export premium is due to a learning-by-exporting process rather than just a self-selection of more productive firms into exporting. In contrast to exporters to OECD countries, exporters to Non-OECD countries self-select into export markets, signaling the importance of the technical assistance from OECD buyers.

Suggested Citation

  • Youssouf Kiendrebeogo, 2020. "Learning by exporting or self-selection into exporting?," Middle East Development Journal, Taylor & Francis Journals, vol. 12(2), pages 304-325, July.
    • Handle: RePEc:taf:rmdjxx:v:12:y:2020:i:2:p:304-325
    DOI: 10.1080/17938120.2020.1756105
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    Cited by:

    1. Saša Petković & Jelica Rastoka & Dragana Radicic, 2023. "Impact of Innovation and Exports on Productivity: Are There Complementary Effects?," Sustainability, MDPI, vol. 15(9), pages 1-22, April.
    2. Bhattacharya, Mita & Okafor, Luke Emeka & Pradeep, V., 2021. "International firm activities, R&D, and productivity: Evidence from Indian manufacturing firms," Economic Modelling, Elsevier, vol. 97(C), pages 1-13.

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