A Note on Detecting Learning by Exporting
Abstract
Learning by exporting refers to the mechanism whereby firms improve their performance (productivity) after entering export markets. Although this mechanism is often mentioned in policy documents, a significant share of econometric studies has not found evidence for this hypothesis. This paper shows that the methods used to come to the latter conclusion suffer from a large internal inconsistency: they rely on an exogenous evolving productivity process. I show how recent proxy estimators can accommodate endogenous productivity processes such as learning by exporting. I rely on my framework to discuss the bias introduced by ignoring such a process and how adjusting for it can lead to detect significant productivity gains upon export entry. I estimate my model on standard firm-level data and find substantial additional productivity gains from entering export markets.Download Info
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Bibliographic Info
Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 8121.Length:
Date of creation: Nov 2010
Date of revision:
Handle: RePEc:cpr:ceprdp:8121
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Related research
Keywords: Learning by Exporting; Productivity;Other versions of this item:
- Jan De Loecker, 2010. "A Note on Detecting Learning by Exporting," NBER Working Papers 16548, National Bureau of Economic Research, Inc.
- F0 - International Economics - - General
- L6 - Industrial Organization - - Industry Studies: Manufacturing
References
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- Jan De Loecker, 2011.
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Armando Silva, 2011.
"Financial constraints and exports: evidence from Portuguese manufacturing firms,"
FEP Working Papers
402, Universidade do Porto, Faculdade de Economia do Porto.
- Armando Silva, 2011. "Financial Constraints and Exports: Evidence from Portuguese Manufacturing Firms," International Journal of Economic Sciences and Applied Research (IJESAR), Technological Educational Institute (TEI) of Kavala, Greece, vol. 4(3), pages 7-19, December.
- Itzhak Goldberg & John Gabriel Goddard & Smita Kuriakose & Jean-Louis Racine, 2011. "Igniting Innovation : Rethinking the Role of Government in Emerging Europe and Central Asia," World Bank Publications, The World Bank, number 2358.
- Wagner, Joachim, 2011.
"Productivity and International Firm Activities: What Do We Know?,"
IZA Policy Papers
23, Institute for the Study of Labor (IZA).
- Joachim Wagner, 2011. "Productivity and International Firm Activities: What do we know?," Working Paper Series in Economics 194, University of Lüneburg, Institute of Economics.
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