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Productivity, Innovations and Exports in the Chilean Manufacturing Industry

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  • Roberto Álvarez
  • Álvaro García

Abstract

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.

Suggested Citation

  • Roberto Álvarez & Álvaro García, 2008. "Productivity, Innovations and Exports in the Chilean Manufacturing Industry," Working Papers Central Bank of Chile 476, Central Bank of Chile.
  • Handle: RePEc:chb:bcchwp:476
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. repec:spr:portec:v:1:y:2002:i:2:d:10.1007_s10258-002-0010-3 is not listed on IDEAS
    4. Richard Blundell & Monica Costa Dias, 2009. "Alternative Approaches to Evaluation in Empirical Microeconomics," Journal of Human Resources, University of Wisconsin Press, vol. 44(3).
    5. Stefan Lachenmaier & Ludger Wößmann, 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.
    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 545-564, September.
    8. Stefan Lachenmaier & Ludger Wößmann, 2004. "Does Innovation Cause Exports? Evidence from Exogenous Innovation Impulses and Obstacles," CESifo Working Paper Series 1178, CESifo Group Munich.
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