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Trade and Productivity in a Transition Economy: the Role of Industry and Export Destination

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  • Carlo Reggiani

    () (University of Manchester)

  • Yevgeniya Shevtsova

    () (University of Liverpool)

Abstract

Abstract This paper focuses on the joint role of industry technology intensity and export market characteristics in the analysis of export-related productivity gains. Using a unique database of Ukrainian manufacturing firms in 2000-06, we classify all manufacturing sectors according to their technology intensity and estimate destination-specific learning by exporting effects separately for firms operating in high and low technology sectors. New exporters in high technology sectors enjoy robust long-term productivity growth premia when targeting advanced export markets, consistent with learning through exports. Export entrants in low technology sectors, instead, enjoy mostly short-term productivity improvements regardless of the export destination. Our findings suggest that the systematic distinction between the technology intensity of various industries is a relevant dimension for empirical studies on destination-specific learning by exporting.

Suggested Citation

  • Carlo Reggiani & Yevgeniya Shevtsova, 2018. "Trade and Productivity in a Transition Economy: the Role of Industry and Export Destination," Journal of Industry, Competition and Trade, Springer, vol. 18(3), pages 395-428, September.
  • Handle: RePEc:kap:jincot:v:18:y:2018:i:3:d:10.1007_s10842-018-0271-x
    DOI: 10.1007/s10842-018-0271-x
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    More about this item

    Keywords

    Exports; TFP; Destination-specific learning-by-exporting effect; Propensity score matching; Difference-in-differences; Semiparametric estimator;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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