Export and Productivity Under Different Market Condition: Evidence from Japan
We use a large dataset of Japanese manufacturing firms to compare the effects of export entry on productivity under different export market conditions. Using the established econometric procedures of Propensity Score Matching and Difference-in-Differences, we explicitly estimate the effects of export entry during two periods with fairly different export market conditions: from 2002 to 2005, corresponding to the earlier period of global economic expansion that ended in 2007, and from 1998 to 2001, the period which witnessed the aftermath of the Asian financial crisis. We find that export entry is associated with significantly higher ex-post productivity growth vis-à-vis non-entrants only during the period with favourable export market conditions. We also find that such advantage in productivity growth is long lasting and is found only for entrants exporting to high-income markets. Furthermore, export entry is associated with higher growth in R&D expenditure only during this period. These findings suggest that the effect of export entry in enhancing productivity growth, sometimes referred to as "learning-by-exporting," depends on good market conditions.
|Date of creation:||May 2011|
|Contact details of provider:|| Postal: 11th floor, Annex, Ministry of Economy, Trade and Industry (METI) 1-3-1, Kasumigaseki Chiyoda-ku, Tokyo, 100-8901|
Web page: http://www.rieti.go.jp/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- De Loecker, Jan, 2007.
"Do exports generate higher productivity? Evidence from Slovenia,"
Journal of International Economics,
Elsevier, vol. 73(1), pages 69-98, September.
- Jan De Loecker, 2004. "Do Exports Generate Higher Productivity? Evidence from Slovenia," LICOS Discussion Papers 15104, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- Van Biesebroeck, Johannes, 2005. "Exporting raises productivity in sub-Saharan African manufacturing firms," Journal of International Economics, Elsevier, vol. 67(2), pages 373-391, December.
- Johannes Van Biesebroeck, 2003. "Exporting Raises Productivity in Sub-Saharan African Manufacturing Plants," NBER Working Papers 10020, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:eti:dpaper:11054. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (NUKATANI Sorahiko)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.