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Export‐market participation and productivity performance in Canadian manufacturing

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  • John R. Baldwin
  • Wulong Gu

Abstract

. In this paper, we explore the linkages between export‐market participation and productivity performance in Canadian manufacturing plants. We also examine differences in the relationship between exporting and productivity for foreign‐controlled as opposed to domestic‐controlled plants, and between younger and older plants. Export participation is associated with improved productivity. The effect is much stronger for domestic‐controlled plants than for foreign‐controlled plants and for younger businesses than for older businesses. We interpret this as evidence that there is a learning effect associated with export activity but that the potential for improving productivity with entry to export markets differs across firms. JEL Classification: F1, O4 Participation au marché d’exportation et productivité dans le secteur manufacturier au Canada. Dans ce mémoire, les auteurs explorent les liens entre participation au marché d’exportation et productivité dans les installations manufacturières au Canada. On examine aussi les différences dans la relation exportation/productivité entre les installations contrôlées par des intérêts étrangers et celles contrôlées par des intérêts canadiens, et entre les installations plus vieilles et plus récentes. La participation au marché d’exportation est associée à une plus grande productivité. L’effet est considérablement plus fort (relativement) pour les installations contrôlées par des intérêts canadiens, et pour les installations les plus récentes. Les auteurs interprètent les résultats comme suggérant qu’il y a un effet d’apprentissage associéà l’activité d’exportation mais que ce potentiel d’accroissement de productivitéà cause de l’entrée dans les marchés d’exportation varie selon les entreprises.

Suggested Citation

  • John R. Baldwin & Wulong Gu, 2003. "Export‐market participation and productivity performance in Canadian manufacturing," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 36(3), pages 634-657, August.
    • Handle: RePEc:wly:canjec:v:36:y:2003:i:3:p:634-657
    DOI: 10.1111/1540-5982.t01-2-00006
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    1. Sofronis K. Clerides & Saul Lach & James R. Tybout, 1998. "Is Learning by Exporting Important? Micro-Dynamic Evidence from Colombia, Mexico, and Morocco," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(3), pages 903-947.
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    JEL classification:

    • F1 - International Economics - - Trade
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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