Export Activity and Productivity: New Evidence from the Egyptian Manufacturing Industry
AbstractThis study explores the relationship between exports and productivity using a panel dataset of Egyptian manufacturing firms. Most previous studies using data from more developed countries suggest that exporters are more productive than non-exporters because the more productive firms self-select into export markets, while exporting does not necessarily improve productivity. We investigate if exporting firms are more productive than non-exporting firms and, if so, whether the productivity differential is due to a self-selection process or to the role of learning from exporting. We also ask if the extent of export activities matters for productivity. We find that both labor productivity and total factor productivity are significantly higher for exporters than for non-exporters. On average, labor productivity and total factor productivity are, respectively, 46% and 63% higher for exporting firms than for domestically-oriented firms. When we differentiate between pre-entry and post-entry differences in productivity, it appears that this export premium is driven by a learning-by-exporting process rather than just a self-selection of more productive firms into exporting. This weak evidence for the selection hypothesis is a reflection of the importance of the level of development of destination countries. In contrast to exporters to OECD countries, exporters to Non-OECD countries self-select into export markets, signaling the importance of the technical assistance from foreign buyers benefiting the former exporters. We also find an inverted U-shaped relationship between export intensity and productivity, suggesting the existence of a "threshold of exporting". These results are robust to controlling for additional firm characteristics and potential outliers.
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 HAL in its series Working Papers with number halshs-00710720.
Date of creation: 18 Feb 2014
Date of revision:
Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00710720
Contact details of provider:
Web page: http://hal.archives-ouvertes.fr/
Exports; Learning from exporting; Self-selection; productivity;
Other versions of this item:
- Youssouf KIENDREBEOGO, 2012. "Export Activity and Productivity: New Evidence from the Egyptian Manufacturing Industry," Working Papers 201220, CERDI.
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-07-08 (All new papers)
- NEP-ARA-2012-07-08 (MENA - Middle East & North Africa)
- NEP-EFF-2012-07-08 (Efficiency & Productivity)
- NEP-INT-2012-07-08 (International Trade)
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.:
- Melitz, Marc J, 2002.
"The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity,"
CEPR Discussion Papers
3381, C.E.P.R. Discussion Papers.
- Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
- Mark J. Melitz, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," NBER Working Papers 8881, National Bureau of Economic Research, Inc.
- Sofronis Clerides & Saul Lach & James Tybout, 1996.
"Is "learning-by-exporting" important? Micro-dynamic evidence from Colombia, Mexico and Morocco,"
Finance and Economics Discussion Series
96-30, Board of Governors of the Federal Reserve System (U.S.).
- Sofronis K. Clerides & Saul Lach & James R. Tybout, 1998. "Is Learning By Exporting Important? Micro-Dynamic Evidence From Colombia, Mexico, And Morocco," The Quarterly Journal of Economics, MIT Press, vol. 113(3), pages 903-947, August.
- Sofronis Clerides & Saul Lach & James Tybout, 1996. "Is "Learning-by-Exporting" Important? Micro-Dynamic Evidence from Colombia, Mexico and Morocco," NBER Working Papers 5715, National Bureau of Economic Research, Inc.
- Van Biesebroeck, Johannes, 2005.
"Exporting raises productivity in sub-Saharan African manufacturing firms,"
Journal of International Economics,
Elsevier, vol. 67(2), pages 373-391, December.
- Johannes Van Biesebroeck, 2003. "Exporting Raises Productivity in Sub-Saharan African Manufacturing Plants," NBER Working Papers 10020, National Bureau of Economic Research, Inc.
- Arne Bigsten & Paul Collier & Stefan Dercon & Marcel Fafchamps & Bernard Gauthier & Jan Willem Gunning & Abena Oduro & Remco Oostendorp & Catherine Pattillo & M�ns Soderbom & Francis Teal & Albert Z, 2004.
"Do African Manufacturing Firms Learn from Exporting?,"
Journal of Development Studies,
Taylor & Francis Journals, vol. 40(3), pages 115-141.
- Arne Bigsten & Paul Collier & Stefan Dercon & Marcel Fafchamps & Bernard Gauthier & Jan Willem Gunning & Abena Oduro & Remco Oostendorp & Catherine Pattillo & Måns Söderbom & Francis Teal & Albert Z, 2002. "Do African Manufacturing Firms Learn from Exporting?," CSAE Working Paper Series 2002-09, Centre for the Study of African Economies, University of Oxford.
- Arne Bigsten & Paul Collier & Stefan Dercon & Marcel Fachamps & Bernard Gauthier & Jan Willem Gunning & Abena Oduro & Remco Oostendorp & Catherine Pattillo & Mans Soderbom & Francis Teal & Albert Zeuf, 2004. "Do African manufacturing firms learn from exporting?," Development and Comp Systems 0409071, EconWPA.
- Paul Collier & Marcel Fafchamps & Francis Teal & Stefan Dercon, 2002. "Do African Manufacturing Firms Learn from Exporting?," Economics Series Working Papers WPS/2002-09, University of Oxford, Department of Economics.
- James Levinsohn & Amil Petrin, 2000.
"Estimating Production Functions Using Inputs to Control for Unobservables,"
NBER Working Papers
7819, National Bureau of Economic Research, Inc.
- James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," Review of Economic Studies, Wiley Blackwell, vol. 70(2), pages 317-341, 04.
- John Baldwin & Wulong Gu, 2003. "Export-market participation and productivity performance in Canadian manufacturing," Canadian Journal of Economics, Canadian Economics Association, vol. 36(3), pages 634-657, August.
- Lionel Nesta & Flora Bellone & Patrick Musso & Stefano Schiavo, 2008.
"Financial Constraints and Firm Export Behavior,"
Sciences Po publications
16, 2008, Sciences Po.
- Andrew B. Bernard & J. Bradford Jensen, 1999.
"Exporting and Productivity,"
NBER Working Papers
7135, National Bureau of Economic Research, Inc.
- Fernandes, Ana M. & Isgut, Alberto E., 2005.
"Learning-by-doing, learning-by-exporting, and productivity : evidence from Colombia,"
Policy Research Working Paper Series
3544, The World Bank.
- Ana M. Fernandes & Alberto E. Isgut, 2005. "Learning-by-Doing, Learning-by-Exporting, and Productivity: Evidence from Colombia," DEGIT Conference Papers c010_018, DEGIT, Dynamics, Economic Growth, and International Trade.
- Delgado, Miguel A. & Farinas, Jose C. & Ruano, Sonia, 2002. "Firm productivity and export markets: a non-parametric approach," Journal of International Economics, Elsevier, vol. 57(2), pages 397-422, August.
- Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "Multilateral Comparisons of Output, Input, and Productivity Using Superlative Index Numbers," Economic Journal, Royal Economic Society, vol. 92(365), pages 73-86, March.
- Blalock, Garrick & Gertler, Paul J., 2004. "Learning from exporting revisited in a less developed setting," Journal of Development Economics, Elsevier, vol. 75(2), pages 397-416, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.