Export and Productivity Under Different Market Condition: Evidence from Japan
AbstractWe use a large dataset of Japanese manufacturing firms to compare the effects of export entry on productivity under different export market conditions. Using the established econometric procedures of Propensity Score Matching and Difference-in-Differences, we explicitly estimate the effects of export entry during two periods with fairly different export market conditions: from 2002 to 2005, corresponding to the earlier period of global economic expansion that ended in 2007, and from 1998 to 2001, the period which witnessed the aftermath of the Asian financial crisis. We find that export entry is associated with significantly higher ex-post productivity growth vis-�-vis non-entrants only during the period with favourable export market conditions. We also find that such advantage in productivity growth is long lasting and is found only for entrants exporting to high-income markets. Furthermore, export entry is associated with higher growth in R&D expenditure only during this period. These findings suggest that the effect of export entry in enhancing productivity growth, sometimes referred to as "learning-by-exporting," depends on good market conditions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 11054.
Length: 34 pages
Date of creation: May 2011
Date of revision:
Contact details of provider:
Postal: 11th floor, Annex, Ministry of Economy, Trade and Industry (METI) 1-3-1, Kasumigaseki Chiyoda-ku, Tokyo, 100-8901
Web page: http://www.rieti.go.jp/
More information through EDIRC
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- De Loecker, Jan, 2007.
"Do exports generate higher productivity? Evidence from Slovenia,"
Journal of International Economics,
Elsevier, vol. 73(1), pages 69-98, September.
- Jan De Loecker, 2004. "Do Exports Generate Higher Productivity? Evidence from Slovenia," LICOS Discussion Papers 15104, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (NUKATANI Sorahiko).
If references are entirely missing, you can add them using this form.