IDEAS home Printed from https://ideas.repec.org/a/taf/glecrv/v35y2006i4p397-411.html
   My bibliography  Save this article

Learning-by-Exporting: Micro-dynamic Evidence from Taiwan

Author

Listed:
  • Deng-Shing Huang
  • Pei-Chou Lin
  • Yo-Yi Huang

Abstract

Do firms become more efficient after becoming exporters? Widespread empirical evidence indicates that exporting manufacturers achieve higher productivity levels than non-exporting manufacturers. Two explanations, self-selection and learning-by-exporting, are proposed in the literature, with the self-selection theory arguing that firms with higher productivity levels self-select into the highly competitive export market, whilst the learning-by-exporting theory argues that firms become more efficient after becoming exporters. Although the self-selection effect has the support of many empirical studies, the learning effect still has little or no empirical support, and is inconsistent with many of the micro-survey studies. We illustrate numerically that since it is heavily reliant upon an examination of productivity differential between exporters and non-exporters, the commonly-adopted approach may suffer from an underestimation of the learning effect in the export market. Such underestimation is also apparent when the underlying economy becomes more open to world markets. As a complement, we provide an alternative empirical strategy based upon active learning theory, and apply this to Taiwanese manufacturing census data for the years 1986, 1991 and 1996. We find that learning effects are empirically supported for both the export and non-export markets. Furthermore, we find that the learning effect in the non-export market is much stronger than in the export market.

Suggested Citation

  • Deng-Shing Huang & Pei-Chou Lin & Yo-Yi Huang, 2006. "Learning-by-Exporting: Micro-dynamic Evidence from Taiwan," Global Economic Review, Taylor & Francis Journals, vol. 35(4), pages 397-411.
  • Handle: RePEc:taf:glecrv:v:35:y:2006:i:4:p:397-411
    DOI: 10.1080/12265080601053801
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/12265080601053801
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:glecrv:v:35:y:2006:i:4:p:397-411. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/RGER20 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.