Firm Productivity and Exports: Evidence from Ethiopian Manufacturing
This paper examines the causal relationship between exporting and productivity using plant-level panel data for Ethiopian manufacturing. We trace the trajectory of total factor productivity and other productivity measures of groups of firms classified by their export history. We tested learning-by-exporting using a one-step system-general method of moments approach with the export-status included directly in the production function. We found strong evidence of not only self-selection but also learning-by-exporting. Depending on the specification previous exporting appears to have shifted the production function by 15-26 per cent. Exporters had on average three times more employees, and paid 1.6 times higher average wage than non-exporters.
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Volume (Year): 45 (2009)
Issue (Month): 10 ()
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