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Exporting and performance: evidence from Chilean plants

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  • Roberto Alvarez
  • Ricardo A. López

Abstract

. Recent empirical evidence documents the superior characteristics of exporters relative to non‐exporters. Three explanations for this phenomenon have been proposed: self‐selection; learning‐by‐exporting; and conscious self‐selection. We test these three hypotheses using plant‐level data from Chile. We find that plants that enter international markets show superior initial performance compared with non‐exporters, consistent with self‐selection; we observe increases in productivity after plants begin to export, which is consistent with learning‐by‐exporting. We also find strong evidence supporting the idea that self‐selection is a conscious process by which plants increase productivity with the purpose of becoming exporters. JEL classification: F14; O54; D21 Exportations et performance: résultats pour des établissements chiliens. Certains résultats récents montrent empiriquement que les exportateurs ont une performance supérieure à celle des non exportateurs. On a proposé trois explications de ce phénomène : auto sélection, apprentissage par l’exportation, et auto sélection consciente. On met ces trois hypothèses au test à l’aide de données chiliennes. On découvre que les établissements qui entrent sur les marchés internationaux ont une performance initiale meilleure que celles des non exportateurs, ce qui supporte l’hypothèse d’auto sélection; on observe aussi que leur productivité s’accroît après qu’ils ont commencéà exporter, ce qui supporte l’hypothèse d’apprentissage; enfin on obtient des résultats qui montrent que ce processus d’auto sélection est conscient : les établissements accroissent leur productivité dans le but de devenir exportateurs.

Suggested Citation

  • Roberto Alvarez & Ricardo A. López, 2005. "Exporting and performance: evidence from Chilean plants," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 38(4), pages 1384-1400, November.
  • Handle: RePEc:wly:canjec:v:38:y:2005:i:4:p:1384-1400
    DOI: 10.1111/j.0008-4085.2005.00329.x
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    References listed on IDEAS

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    1. Bernard, Andrew B. & Bradford Jensen, J., 1999. "Exceptional exporter performance: cause, effect, or both?," Journal of International Economics, Elsevier, vol. 47(1), pages 1-25, February.
    2. Nina Pavcnik, 2002. "Trade Liberalization, Exit, and Productivity Improvements: Evidence from Chilean Plants," Review of Economic Studies, Oxford University Press, vol. 69(1), pages 245-276.
    3. Andrew Bernard & Joachim Wagner, 1997. "Exports and success in German manufacturing," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 133(1), pages 134-157, March.
    4. Aw, B.Y. & Batra, G., 1998. "Technological Capability and Firm Efficiency in Taiwan (China)," Papers 1, Pennsylvania State - Department of Economics.
    5. Andrew B. Bernard & J. Bradford Jensen, 2004. "Why Some Firms Export," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 561-569, May.
    6. Aw, Bee Yan & Chung, Sukkyun & Roberts, Mark J, 2000. "Productivity and Turnover in the Export Market: Micro-level Evidence from the Republic of Korea and Taiwan (China)," World Bank Economic Review, World Bank Group, vol. 14(1), pages 65-90, January.
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    12. Davide Castellani, 2002. "Export behavior and productivity growth: Evidence from Italian manufacturing firms," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 138(4), pages 605-628, December.
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    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory

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