"The Relationship between Exports and Productivity at the Plant level in the Turkish Apparel and Motor Vehicle Parts Industries
AbstractWe investigate the relationship between exports and productivity in the Turkish apparel and motor vehicle and parts industries from 1990-1996, using two different models for plant-level panel data. In the first model, we examine the effect of past export status on current productivity both with and without controlling for the export history of plants. Our results show that the plants' prior market experience is a factor in their current productivity. The learning effects are evident among continuing exporters and entrants. This model, however, neither controls for the endogeneity of the explanatory variables nor for the unobserved plant-specific effects that persist over time. Moreover, it does not distinguish between the long- and short-run relationships between exports and productivity. Thus, a second model, an Error- Correction specification for panel data, is estimated to address these three issues. Our findings suggest that there is a bidirectional relationship between exports and productivity both in the short- and long-run. The effect of productivity on exporting is much stronger than the effect of exporting on productivity, suggesting that more productive firms enter the export market, then they experience a productivity enhancement due to their participation in the export market
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Bibliographic InfoPaper provided by Econometric Society in its series Econometric Society 2004 North American Summer Meetings with number 138.
Date of creation: 11 Aug 2004
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Productivity; Multilateral Index; Exports; Causality; Error-Correction Model; Dynamic Panel Data Estimator; System GMM.;
Find related papers by JEL classification:
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
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