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Exporting and performance: evidence from Chilean plants

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  • Roberto Alvarez
  • Ricardo López

Abstract

Recent empirical evidence documents the superior characteristics of exporters relative to non-exporters. Three explanations for this phenomenon have been proposed: self-selection; learning-by-exporting; and conscious self-selection. We test these three hypotheses using plant-level data from Chile. We find that plants that enter international markets show superior initial performance compared with non-exporters, consistent with self-selection; we observe increases in productivity after plants begin to export, which is consistent with learning-by-exporting. We also find strong evidence supporting the idea that self-selection is a conscious process by which plants increase productivity with the purpose of becoming exporters.

Suggested Citation

  • Roberto Alvarez & Ricardo López, 2005. "Exporting and performance: evidence from Chilean plants," Canadian Journal of Economics, Canadian Economics Association, vol. 38(4), pages 1384-1400, November.
  • Handle: RePEc:cje:issued:v:38:y:2005:i:4:p:1384-1400
    DOI: 10.1111/j.0008-4085.2005.00329.x
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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory

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