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Exporter and Non-Exporter Productivity Differentials: Evidence from Australian Manufacturing Establishments

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Author Info
Alfons Palangkaraya () (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)
Jongsay Yong () (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

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Abstract

We study the link between exporting and productivity using unpublished establishment level data of the Australian manufacturing from 1994 to 2000. We find there is significant difference in the first moment as well as the whole distribution of productivity between exporters and non-exporters. At the mean level, the average productivity differentials between Australian exporters and non-exporters are comparable to that of, for examples, the United States, Germany, or Taiwan. More importantly, as also found in almost all other countries, we find that the bigger and more productive firms appear to self-select into the export market. In addition, we also find that a higher intensity and longer period of export market exposure is associated with a higher level of productivity, indicating a possible learning-by-exporting effect. JEL Classification: D21; F21

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Publisher Info
Paper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2007n04.

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Length: 25 pages
Date of creation: Feb 2007
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Handle: RePEc:iae:iaewps:wp2007n04

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Related research
Keywords: Productivity Exports Australia Manufacturing Establishment Exit Employment.

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References listed on IDEAS
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.:
  1. Joachim Wagner, 2005. "Exports and Productivity: A Survey of the Evidence fro Firm Level Data," International Trade 0504005, EconWPA. [Downloadable!]
    Other versions:
  2. Qi Li, 1996. "Nonparametric testing of closeness between two unknown distribution functions," Econometric Reviews, Taylor and Francis Journals, vol. 15(3), pages 261-274. [Downloadable!] (restricted)
  3. Bernard, Andrew B. & Bradford Jensen, J., 1999. "Exceptional exporter performance: cause, effect, or both?," Journal of International Economics, Elsevier, vol. 47(1), pages 1-25, February. [Downloadable!] (restricted)
    Other versions:
  4. Owen Gabbitas & Paul Gretton, 2003. "Firm size and export performance: some empirical evidence," International Trade 0304003, EconWPA. [Downloadable!]
  5. Subodh Kumar & R. Robert Russell, 2002. "Technological Change, Technological Catch-Up, and Capital Deepening: Relative Contributions to Growth and Convergence," American Economic Review, American Economic Association, vol. 92(3), pages 527-548, June. [Downloadable!] (restricted)
  6. David H. Good & M. Ishaq Nadiri & Robin C. Sickles, 1996. "Index Number and Factor Demand Approaches to the Estimation of Productivity," NBER Working Papers 5790, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. Andrew Bernard & Joachim Wagner, 2001. "Export entry and exit by German firms," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 127(1), pages 105-123, March. [Downloadable!] (restricted)
    Other versions:
  8. Hopenhayn, Hugo A, 1992. "Entry, Exit, and Firm Dynamics in Long Run Equilibrium," Econometrica, Econometric Society, vol. 60(5), pages 1127-50, September. [Downloadable!] (restricted)
  9. Aw, Bee Yan & Chung, Sukkyun & Roberts, Mark J, 2000. "Productivity and Turnover in the Export Market: Micro-level Evidence from the Republic of Korea and Taiwan (China)," World Bank Economic Review, Oxford University Press, vol. 14(1), pages 65-90, January.
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