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Does Firm Size Affect Self-selection and Learning-by-Exporting?

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  • Juan A. Máñez-Castillejo
  • María E. Rochina-Barrachina
  • Juan A. Sanchis-Llopis

Abstract

Abstract The trade literature has long discussed the existence of some benefits attributed to exporting, among others, the improvement of firm productivity. This paper examines whether firm size plays a role in this supposedly favourable relationship between exporting and total factor productivity (TFP). To examine this, we investigate, separately for large and small firms, whether firms starting to export perform better ex ante (self-selection) than non-exporting firms and, conditional on this fact, if they are also more productive ex post (learning-by-exporting). With this purpose, we use both stochastic dominance and matching techniques. The dataset is a representative sample of Spanish manufacturing firms drawn from the Encuesta sobre Estrategias Empresariales for 1990-2002. Our results shed light on the importance of considering differences in firm size when analysing both self-selection into exporting and post-entry productivity changes. They confirm the existence of a binding process of self-selection into exporting among small firms, but not among large firms. Post-entry productivity growth, although with different time patterns, is significant both for small and large firms. Copyright 2010 Blackwell Publishing Ltd.

Suggested Citation

  • Juan A. Máñez-Castillejo & María E. Rochina-Barrachina & Juan A. Sanchis-Llopis, 2010. "Does Firm Size Affect Self-selection and Learning-by-Exporting?," The World Economy, Wiley Blackwell, vol. 33(3), pages 315-346, March.
  • Handle: RePEc:bla:worlde:v:33:y:2010:i:3:p:315-346
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    References listed on IDEAS

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    Cited by:

    1. Beneito, Pilar & Rochina-Barrachina, María Engracia & Sanchis, Amparo, 2014. "Learning through experience in Research & Development: An empirical analysis with Spanish firms," Technological Forecasting and Social Change, Elsevier, vol. 88(C), pages 290-305.
    2. Christian Le Bas & Caroline Mothe & Thuc Uyen Nguyen-Thi, 2011. "Technological innovation persistence : Literature survey and exploration of the role of organizational innovation," Working Papers halshs-00649095, HAL.
    3. Paz Coscollá-Girona & Pilar Beneito López & Amparo Sanchis Llopis & María Engracia Rochina Barrachina, 2011. "Competitive pressure determinants and innovation at the firm level," Working Papers. Serie EC 2011-02, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    4. Hernández, Pedro Jesús, 2012. "Is there a Producer Quality Wage Premium similar to the Exporter Wage Premium," UMUFAE Economics Working Papers 28517, DIGITUM. Universidad de Murcia.
    5. Miguel Manjón & Juan Máñez & María Rochina-Barrachina & Juan Sanchis-Llopis, 2013. "Reconsidering learning by exporting," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 149(1), pages 5-22, March.
    6. Cassey Lee, . "The Exporting and Productivity Nexus: Does Firm Size Matter?," Chapters, Economic Research Institute for ASEAN and East Asia (ERIA).
    7. Fernanda Ricotta, 2016. "Productivity Differences By Export Destination," Working Papers 201601, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
    8. Paul Wakke & Knut Blind & Florian Ramel, 2016. "The impact of participation within formal standardization on firm performance," Journal of Productivity Analysis, Springer, vol. 45(3), pages 317-330, June.
    9. Joachim Wagner, 2012. "International trade and firm performance: a survey of empirical studies since 2006," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 148(2), pages 235-267, June.
    10. Hernández, Pedro, 2012. "Is there a producer quality wage premium similar to the exporter wage premium?," MPRA Paper 41082, University Library of Munich, Germany.
    11. Kazuhiko Yokota & Kyosuke Kurita & Shujiro Urata, 2016. "In Search of the Learning-by-Exporting Effect: Role of Economies of Scale and Technology," China Economic Policy Review (CEPR), World Scientific Publishing Co. Pte. Ltd., vol. 5(01), pages 1-27, June.
    12. repec:kap:sbusec:v:49:y:2017:i:3:d:10.1007_s11187-017-9849-7 is not listed on IDEAS
    13. Cirera,Xavier & Lederman,Daniel & Máñez,J.A. & Rochina,M.E. & Sanchis,J.A., 2015. "The export-productivity link in Brazilian manufacturing firms," Policy Research Working Paper Series 7365, The World Bank.
    14. Juan Máñez & María Rochina-Barrachina & Amparo Sanchis-Llopis & Juan Sanchis-Llopis, 2015. "The determinants of R&D persistence in SMEs," Small Business Economics, Springer, vol. 44(3), pages 505-528, March.

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