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Learning-by-Exporting? Firm-Level Evidence for UK Manufacturing and Services Sectors

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Author Info

  • Richard Harris
  • Qian Cher Li

Abstract

This study empirically assesses the microeconomic exporting-productivity nexus for both the UK manufacturing and services sectors during 1996-2004, based on a weighted FAME dataset. Our results show that firms that are older, that possess intangible assets or that have higher (labour) productivity in the year prior to exporting, are significantly more likely to sell overseas. In testing the post-entry ‘learning-by-exporting’ effect, we employ three approaches to controlling for endogeneity and sample selection, viz. instrumental variables, control function and matching, and find that this effect is present in many industries but not universal, and also varies amongst different types of exporting firms. Our overall estimate for the UK economy suggests a substantial post-entry productivity effect for firms new to exporting; a negative effect for firms exiting overseas markets; and large productivity gains while exporting for those that both enter and exit.

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Bibliographic Info

Paper provided by Business School - Economics, University of Glasgow in its series Working Papers with number 2007_22.

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Date of creation: Aug 2007
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Handle: RePEc:gla:glaewp:2007_22

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Keywords: exports; control function; GMM; matching; TFP; sample selection;

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References

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  1. Sourafel Girma & David Greenaway & Richard Kneller, 2004. "Does Exporting Increase Productivity? A Microeconometric Analysis of Matched Firms," Review of International Economics, Wiley Blackwell, vol. 12(5), pages 855-866, November.
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Cited by:
  1. Alexander Vogel, 2009. "Exporter Performance in the German Business Services Sector: First Evidence from the Services Statistics Panel," Working Paper Series in Economics 111, University of Lüneburg, Institute of Economics.
  2. Alexander Vogel, 2008. "Zur Exporttätigkeit unternehmensnaher Dienstleister in Niedersachsen - Erste Ergebnisse zu Export und Produktivität auf Basis des Umsatzsteuerstatistikpanels," Working Paper Series in Economics 82, University of Lüneburg, Institute of Economics.

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