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Does it matter where you export and does productivity rise with exporting?

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  • Başak Dalgıç
  • Burcu Fazlıoğlu
  • Michael Gasiorek

Abstract

Utilizing a comprehensive dataset for Turkish manufacturing firms, we analyse differentials in the post-entry effects on productivity of exporting to markets with different income levels. We employ propensity score matching techniques with multiple treatments, together with a differences-in-differences (DiD) methodology. Controlling for firm level mark-ups, we explore whether the post-entry effects on productivity are driven by changes in physical productivity. The results confirm the learning-by-exporting hypothesis, and suggest physical productivity gains, in particular for exports to high income countries as opposed to middle low-income countries, even after controlling for the composition of exports. This suggests that where a firm export does matter for productivity growth.

Suggested Citation

  • Başak Dalgıç & Burcu Fazlıoğlu & Michael Gasiorek, 2021. "Does it matter where you export and does productivity rise with exporting?," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 30(5), pages 766-791, July.
    • Handle: RePEc:taf:jitecd:v:30:y:2021:i:5:p:766-791
    DOI: 10.1080/09638199.2021.1909108
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    Cited by:

    1. Ciarli, Tommaso & Coad, Alex & Moneta, Alessio, 2023. "Does exporting cause productivity growth? Evidence from Chilean firms," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 228-239.

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