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Learning-by-exporting in Korean Manufacturing: A Plant-level Analysis

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  • Chin Hee HAHN

    ()
    (Korea Development Institute, Korea)

  • Chang-Gyun PARK

    (College of Business Administration, Chung-Ang University, Korea)

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    Abstract

    The paper analyzes whether firms that start exporting become more productive utilizing recently developed sample matching procedures to control the problems from self-selection into the export market. We use plant level panel data on Korean manufacturing sector from 1990 to 1998. We find clear and robust empirical evidence in favor of the learning-by-exporting effect; total factor productivity differentials between exporters and their domestic counterparts arises and widens during several years after export market entry. We also find that the effect is more pronounced for firms that have higher skill-intensity, higher share of exports in production, and are small in size. Overall, the evidence suggests that exporting is one important channel through which domestic firms acquire accesses to advanced knowledge and better technology. Also, the stronger learning-by-doing effect for firms with higher skill-intensity seems to support the view that "absorptive capacity" matters to receive knowledge spillovers from exporting activity.

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    File URL: http://www.eria.org/ERIA-DP-2009-04.pdf
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    Bibliographic Info

    Paper provided by Economic Research Institute for ASEAN and East Asia (ERIA) in its series Working Papers with number d007.

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    Date of creation: 2009
    Date of revision:
    Handle: RePEc:era:wpaper:d007

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    Related research

    Keywords: Learning-by-exporting; Productivity; Propensity score matching.;

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    Cited by:
    1. DU, Julan & LU, Yi & TAO, Zhigang & YU, Linhui, 2012. "Do domestic and foreign exporters differ in learning by exporting? Evidence from China," China Economic Review, Elsevier, vol. 23(2), pages 296-315.
    2. Schmeiser, Katherine N., 2012. "Learning to export: Export growth and the destination decision of firms," Journal of International Economics, Elsevier, vol. 87(1), pages 89-97.

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