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Exporting And Productivity: The Effects Of Multi-Market And Multi-Product Export Entry

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Author Info

  • Jaan Masso
  • Priit Vahter

Abstract

Most of the empirical studies on the micro-level effects of exporting on productivity pay little attention to the potentially heterogeneous effects of the different modes of export market entry. We study how productivity of firms is affected by export entry simultaneously into several markets or export entry with several export products, and compare these to the entry into fewer markets or the entry with fewer products. Our analysis is based on detailed export data from firms in Estonia, disaggregated for each firm by export markets and individual products. We show that the early stage entry into several export markets or with several products leads to higher growth in productivity, compared with entry into only one foreign market or with only one product. This implies significant benefits from experimentation with different markets and different products.

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Bibliographic Info

Paper provided by Faculty of Economics and Business Administration, University of Tartu (Estonia) in its series University of Tartu - Faculty of Economics and Business Administration Working Paper Series with number 83.

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Length: 27 pages
Date of creation: 2011
Date of revision:
Handle: RePEc:mtk:febawb:83

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Related research

Keywords: exporting; export strategy; multi-product exporters; learning-by-exporting;

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References

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Citations

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Cited by:
  1. Jaan Masso & Priit Vahter, 2012. "The Role Of Product Level Entry And Exit In Export And Productivity Growth: Evidence From Estonia," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 86, Faculty of Economics and Business Administration, University of Tartu (Estonia).
  2. Cebeci, Tolga & Fernandes, Ana M., 2013. "Micro dynamics of Turkey's export boom in the 2000s," Policy Research Working Paper Series 6452, The World Bank.
  3. Cebeci, Tolga & Fernandes, Ana M. & Freund, Caroline & Pierola, Martha Denisse, 2012. "Exporter dynamics database," Policy Research Working Paper Series 6229, The World Bank.

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