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The export-productivity link for Brazilian manufacturing firms

Author

Listed:
  • Xavier Cirera

    (Economics Research World Bank Group)

  • Daniel Lederman

    (Economics Research World Bank Group)

  • Juan A. Mañez

    (University of Valencia and ERICES)

  • María E. Rochina

    (University of Valencia and ERICES
    University of Valencia and ERICES)

Abstract

This paper explores the link between exports and total factor productivity (TFP) for Brazilian manufacturing firms over the period 2000-2008, both under the assumption of an exogenous or an endogenous law of motion for productivity. We first obtain TFP estimates under each alternative assumption following Wooldridge (2009) GMM procedure. Second, using stochastic dominance techniques we analyse whether the ex-ante most productive firms are those that start exporting (self-selection hypothesis). Finally, we test whether exporting boosts firms TFP growth (learning-by-exporting hypothesis) using matching techniques, to control for the possibility that selection into exports may not be a random process. Our results confirm the self-selection hypothesis and show that starting to export yields firms an extra TFP growth that emerges since the first year exporting but lasts only from this year to the next. Further, this extra TFP growth is much higher under the assumption of an endogenous law of motion for productivity, which reinforces the importance of accounting for firm export status to study the evolution of productivity.

Suggested Citation

  • Xavier Cirera & Daniel Lederman & Juan A. Mañez & María E. Rochina, 2015. "The export-productivity link for Brazilian manufacturing firms," Working Papers 1505, Department of Applied Economics II, Universidad de Valencia.
  • Handle: RePEc:eec:wpaper:1505
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    References listed on IDEAS

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    1. Jan De Loecker, 2013. "Detecting Learning by Exporting," American Economic Journal: Microeconomics, American Economic Association, vol. 5(3), pages 1-21, August.
    2. Hansson, Pär & Lundin, Nan Nan, 2003. "Exports as an Indicator on or Promoter of Successful Swedish Manufacturing Firms in the 1990s," Working Paper Series 189, Trade Union Institute for Economic Research.
    3. Alberto Abadie & David Drukker & Jane Leber Herr & Guido W. Imbens, 2004. "Implementing matching estimators for average treatment effects in Stata," Stata Journal, StataCorp LP, vol. 4(3), pages 290-311, September.
    4. Delgado, Miguel A. & Farinas, Jose C. & Ruano, Sonia, 2002. "Firm productivity and export markets: a non-parametric approach," Journal of International Economics, Elsevier, vol. 57(2), pages 397-422, August.
    5. James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," Review of Economic Studies, Oxford University Press, vol. 70(2), pages 317-341.
    6. Ackerberg, Daniel & Caves, Kevin & Frazer, Garth, 2006. "Structural identification of production functions," MPRA Paper 38349, University Library of Munich, Germany.
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    Cited by:

    1. Biljana Jovanovic, 2020. "Export and firms' performance in North Macedonia: self selection or learning by doing?," Working Papers 2020-01, National Bank of the Republic of North Macedonia.
    2. Biljana Jovanovic, 2020. "Export and firms’ performance in North Macedonia: self selection or learning by doing?," Working Papers 2020-00, National Bank of the Republic of North Macedonia.

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    More about this item

    Keywords

    TFP; export status; exogenous vs. endogenous Markov; semi-parametric approach; self-selection; stochastic dominance; learning-by exporting; matching techniques.;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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