We investigate whether exporting firms generate possibilities for productivity enhancement by other firms through spillovers. While spillovers have been analyzed when domestic learn from foreign-owned firms, we consider the possibility of learning from firms that export, irrespective of ownership origin. We find evidence consistent with learning from exporters to upstream producers. Foreign-owned firms that do not export do not generate spillovers. Therefore, our results suggest that export activity, as opposed to foreign direct investment (FDI) per se, is associated with knowledge diffusion to input suppliers. Indeed, the results suggest that FDI subsidies to foster technology spillovers may well be dominated by certain export promotion strategies. In addition, removing barriers to exports can prove less costly than removing barriers to FDI inflows.
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Paper provided by Wilfrid Laurier University, Department of Economics in its series Working Papers with number
eg0057.
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Andrew B. Bernard & J. Bradford Jensen & Stephen J. Redding & Peter K. Schott, 2007.
"Firms in International Trade,"
NBER Working Papers
13054, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions:
Andrew B. Bernard & J. Bradford Jensen & Stephen Redding & Peter K. Schott, 2007.
"Firms in International Trade,"
CEP Discussion Papers
dp0795, Centre for Economic Performance, LSE.
[Downloadable!]
Andrew Bernard & J. Bradford Jensen & Stephen Redding & Peter Schott, 2007.
"Firms in International Trade,"
Working Papers
07-14, Center for Economic Studies, U.S. Census Bureau.
[Downloadable!]