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Productivity, Innovations and Exports in the Chilean Manufacturing Industry

  • Roberto Álvarez
  • Álvaro García

This paper studies the relationship among exports, productivity and technological innovation for Chilean manufacturing plants. Firstly, we address the causality between exporting and plant productivity. Our results, consistently with most of the evidence for other economies, suggest that only the more productive plants are able to export, but there is not strong support for the hypothesis of learning by exporting. In addition, we explore whether there are other types of learning originated in the exporting activity. In contrast to recent evidence for other economies, we do not find positive effects of regional and industry agglomeration of exporters on the probability of exporting. Finally, we analyze if innovation is associated with improvements in firm export performance. Using information about product and process innovation and expenditure in R&D, we do not find evidence that the probability of exporting is affected by innovation.

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Paper provided by Central Bank of Chile in its series Working Papers Central Bank of Chile with number 476.

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Date of creation: Jul 2008
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Handle: RePEc:chb:bcchwp:476
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  1. Richard Blundell & Monica Costa Dias, 2008. "Alternative approaches to evaluation in empirical microeconomics," CeMMAP working papers CWP26/08, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  2. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
  3. Stefan Lachenmaier & Ludger Wö�mann, 2006. "Does innovation cause exports? Evidence from exogenous innovation impulses and obstacles using German micro data," Oxford Economic Papers, Oxford University Press, vol. 58(2), pages 317-350, April.
  4. Stefan Lachenmaier & Ludger Woessmann, 2004. "Does Innovation Cause Exports? Evidence from Exogenous Innovation Impulses and Obstacles," CESifo Working Paper Series 1178, CESifo Group Munich.
  5. Jose Miguel Benavente & Rodolfo Lauterbach, 2008. "Technological innovation and employment: complements or substitutes?," The European Journal of Development Research, Taylor and Francis Journals, vol. 20(2), pages 318-329.
  6. De Loecker, Jan, 2007. "Do exports generate higher productivity? Evidence from Slovenia," Journal of International Economics, Elsevier, vol. 73(1), pages 69-98, September.
  7. Roberts, Mark J & Tybout, James R, 1997. "The Decision to Export in Colombia: An Empirical Model of Entry with Sunk Costs," American Economic Review, American Economic Association, vol. 87(4), pages 545-64, September.
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