We investigate whether exposure to export markets improves plant productivity. Our estimation framework adds export experience as an additional state variable and a fixed cost of entry into export markets to Olley and Pakes’s (1996) behavioral model. We find robust evidence of a positive effect of export experience on productivity, controlling for the bias caused by self-selection of the most productive plants into exporting. The effect is stronger for plants with the most exposure to exporting, and statistically insignificant for exporters that stop exporting. Our analysis also suggests that matching methods may produce upwardly biased estimates of learning-by-exporting effects.
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Find related papers by JEL classification: F10 - International Economics - - Trade - - - General C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods D21 - Microeconomics - - Production and Organizations - - - Firm Behavior D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
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Arne Bigsten & Paul Collier & Stefan Dercon & Marcel Fafchamps & Bernard Gauthier & Jan Willem Gunning & Abena Oduro & Remco Oostendorp & Catherine Pattillo & Måns Söderbom & Francis Teal & Alb, 2004.
"Do African Manufacturing Firms Learn from Exporting?,"
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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.
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NBER Working Papers
8349, National Bureau of Economic Research, Inc.
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Cited by: (explanations, 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.)
Roberto Álvarez & Martin Andersson & Flora Bellone & Loren Brandt & Davide Castellani & Joze P. Damijan & Jose C. Fariñas & Ana M. Fernandes & Helmut Fryges & Holger Görg & David Greenaway & Stefan, 2007.
"Exports and Productivity: Comparable Evidence for 14 Countries,"
CIE Discussion Papers
2007-11, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
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