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Learning by Exporting: The Case of Mozambican Manufacturing

Author

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  • Antonio Cruz
  • Carol Newman
  • John Rand
  • Finn Tarp

Abstract

In this article, we analyse the learning-by-exporting (LBE) hypothesis in the Mozambican context. Due to the presence of the ‘Born-Global’ phenomenon among exporters, we address the endogeneity introduced by self-selection, combining a generalised Blinder–Oaxaca approach with results from traditional matching techniques. Our results show that very few manufacturing firms export, and that export participation is highly persistent. There is also evidence supporting the LBE hypothesis and the results suggest a significant export premium of between 17 and 21%, controlling for differences in observable characteristics between exporters and non-exporters. Finally, qualitative information on non-exporters seeking new markets suggests that ‘lack of knowledge of potential markets’ is the most severe constraint to international market entry. We conclude that the Mozambican Export Promotion Institute (IPEX) could play an important role in overcoming this information deficit for potential Mozambican exporters.

Suggested Citation

  • Antonio Cruz & Carol Newman & John Rand & Finn Tarp, 2017. "Learning by Exporting: The Case of Mozambican Manufacturing," Journal of African Economies, Centre for the Study of African Economies, vol. 26(1), pages 93-118.
    • Handle: RePEc:oup:jafrec:v:26:y:2017:i:1:p:93-118.
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    File URL: http://hdl.handle.net/10.1093/jae/ejw019
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    Cited by:

    1. Abel Kinyondo & Carol Newman & Finn Tarp, 2016. "The role and effectiveness of Special Economic Zones in Tanzania," WIDER Working Paper Series 122, World Institute for Development Economic Research (UNU-WIDER).
    2. Newman, Carol & Rand, John & Tarp, Finn & Trifkovic, Neda, 2018. "The transmission of socially responsible behaviour through international trade," European Economic Review, Elsevier, vol. 101(C), pages 250-267.
    3. Alan R. Roe, 2018. "Extractive industries and development: Lessons from international experience for Mozambique," WIDER Working Paper Series 56, World Institute for Development Economic Research (UNU-WIDER).
    4. Song, Kaiyi & Dai, Wei & Bian, Yuanchao, 2023. "Trade policy uncertainty and environmental performance of Chinese enterprises," Structural Change and Economic Dynamics, Elsevier, vol. 64(C), pages 73-85.
    5. Alan R. Roe, 2018. "Extractive industries and development: Lessons from international experience for Mozambique," WIDER Working Paper Series wp-2018-56, World Institute for Development Economic Research (UNU-WIDER).

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    More about this item

    Keywords

    firm level analysis; learning spillovers; export; Mozambique;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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