Laura da Costa Ferré () (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República)
Abstract
This paper studies the relationship between productivity and export orientation of Uruguayan manufacturing firms in 1997-2001, trying to explore the self-selection and learning by exporting hypotheses. We use a constant prices plant level data panel for 1997-2001. First, we estimate a production function with several methodologies, including Levinsohn-Petrin, which corrects simultaneity and selection bias. Second, total factor productivity and labour productivity differentials of entrants, exit and permanent groups in the export market relative to non exporters is analized. We found strong evidence of exporters being more productive than non-exporters. Besides, the entrant group of firms was more productive than non exporter group before entering the export market, which is consistent with self-selection. Finally, we also found increases in productivity after firms start to export, which supports the learning by exporting hypothesis.
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Find related papers by JEL classification: D21 - Microeconomics - - Production and Organizations - - - Firm Behavior D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity F14 - International Economics - - Trade - - - Country and Industry Studies of Trade O54 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
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