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Exporting and Plant-Level Efficiency Gains: It’s in the Measure

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  • Alvaro Garcia Marin
  • Nico Voigtländer

Abstract

While there is strong evidence for productivity-driven selection into exporting, previous research has mostly failed to identify export-related efficiency gains within plants. This nonresult is derived from revenue productivity, thus also reflecting prices. Using a census panel of Chilean manufacturing plants, we first confirm the non-result for revenue productivity. We then compute plant-product level marginal cost as an efficiency measure that is not affected by prices. We find within-plant efficiency gains of 15-25%, the same order of magnitude as selection effects across plants. Evidence suggests that technology upgrading in combination with export entry is an important driver behind these gains.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 19033.

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Date of creation: May 2013
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Handle: RePEc:nbr:nberwo:19033

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Cited by:
  1. Michael Peters, 2013. "Heterogeneous mark-ups, growth and endogenous misallocation," LSE Research Online Documents on Economics 54254, London School of Economics and Political Science, LSE Library.
  2. Ingo Geishecker & Philipp J.H. Schröder & Allan Sörensen, 2014. "Explaining the Size Differences of Exporter Productivity Premia: Theory and Evidence," CESifo Working Paper Series 4630, CESifo Group Munich.

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