Firm Productivity and Exports: Evidence from Ethiopian manufacturing
AbstractThis paper examines the causal relationship between exporting and productivity using a ten years long plant-level panel data set from an annual census of Ethiopian manufacturing, rarely available in the sub-Saharan Africa. We exploited its length to trace the trajectory of TFP and other productivity measures of groups of firms classified by their export history. We then tested learning-by-exporting using a one-step system-GMM approach with the export-status included directly in the production function. We addressed potential endogeneity problems by using instrumental variables, and also applied a matching analysis to address potential selection bias. We found strong evidence of not only self-selection but also learning-by-exporting. Depending on the specification previous exporting appears to have shifted the production function by 15-32 %. Exporters had on average three times more employees, and paid 1.6 times higher average wage than those of non-exporters.
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Bibliographic InfoPaper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 303.
Length: 31 pages
Date of creation: 30 Apr 2008
Date of revision:
Contact details of provider:
Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
More information through EDIRC
Productivity; exports; Ethiopia; manufacturing;
Other versions of this item:
- Arne Bigsten & Mulu Gebreeyesus, 2009. "Firm Productivity and Exports: Evidence from Ethiopian Manufacturing," Journal of Development Studies, Taylor & Francis Journals, vol. 45(10), pages 1594-1614.
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
This paper has been announced in the following NEP Reports:
- NEP-AFR-2008-05-10 (Africa)
- NEP-ALL-2008-05-10 (All new papers)
- NEP-DEV-2008-05-10 (Development)
- NEP-EFF-2008-05-10 (Efficiency & Productivity)
- NEP-INT-2008-05-10 (International Trade)
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