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Exporting and Performance of Plants: Evidence from Korean Manufacturing

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  • Chin Hee Hahn

Abstract

This study examines the relationship between exporting and various performance measures including total factor productivity, using the annual plant-level panel data on Korean manufacturing sector during the period of 1990 to 1998. The two key questions examined are whether exporting improves productivity (learning) and/or whether more productive plants export (self-selection). This study provides evidence supporting both self-selection and learning-by-exporting effects, with both effects being more pronounced at around the time of entry into and exit from the export market. Thus, positive and robust cross-sectional correlation between exporting and total factor productivity is accounted for by both selection and learning effects. These results are in contrast with Aw, Chung, and Roberts (2000) who do not find any strong evidence of self-selection or learning in Korea. Similar effects are observed when shipments or employment is considered as a performance measure. Overall, this study suggests that the benefits from exporting have been realized not only through resource reallocation channel but also TFP channel in Korea.

Suggested Citation

  • Chin Hee Hahn, 2004. "Exporting and Performance of Plants: Evidence from Korean Manufacturing," NBER Working Papers 10208, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:10208 Note: ITI
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    References listed on IDEAS

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    6. Bee Yan Aw & Xiaomin Chen & Mark J. Roberts, 1997. "Firm-level Evidence on Productivity Differentials, Turnover, and Exports in Taiwanese Manufacturing," NBER Working Papers 6235, National Bureau of Economic Research, Inc.
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    Citations

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    Cited by:

    1. Siba, Eyerusalem & Gebreeyesus, Mulu, 2014. "Learning to export and learning by exporting: The case of Ethiopian manufacturing," WIDER Working Paper Series 105, World Institute for Development Economic Research (UNU-WIDER).
    2. Kurt Hafner, 2008. "The pattern of international patenting and technology diffusion," Applied Economics, Taylor & Francis Journals, vol. 40(21), pages 2819-2837.
    3. Klein, Michael W. & Moser, Christoph & Urban, Dieter M., 2013. "Exporting, skills and wage inequality," Labour Economics, Elsevier, vol. 25(C), pages 76-85.
    4. Joachim Wagner, 2007. "Exports and Productivity: A Survey of the Evidence from Firm-level Data," The World Economy, Wiley Blackwell, vol. 30(1), pages 60-82, January.
    5. Tabrizy, Saleh S. & Trofimenko, Natalia, 2010. "Scope for export-led growth in a large emerging economy: Is India learning by exporting?," Kiel Working Papers 1633, Kiel Institute for the World Economy (IfW).
    6. repec:wsi:wschap:9789813109698_0005 is not listed on IDEAS
    7. Elif Bascavusoglu-Moreau & Mustafa Colakoglu, 2011. "Impact of SME policies on innovation capabilities: The Turkish case," STPS Working Papers 1105, STPS - Science and Technology Policy Studies Center, Middle East Technical University, revised May 2011.
    8. Inha Oh & Almas Heshmati & Chulwoo Baek & Jeong-Dong Lee, 2009. "Comparative Analysis Of Plant Dynamics By Size: Korean Manufacturing," The Japanese Economic Review, Japanese Economic Association, vol. 60(4), pages 512-538.
    9. Yang, Yong & Mallick, Sushanta, 2014. "Explaining cross-country differences in exporting performance: The role of country-level macroeconomic environment," International Business Review, Elsevier, pages 246-259.
    10. Fukao, Kyoji & Ito, Keiko & Kwon, Hyeog Ug, 2005. "Do out-in M&As bring higher TFP to Japan? An empirical analysis based on micro-data on Japanese manufacturing firms," Journal of the Japanese and International Economies, Elsevier, vol. 19(2), pages 272-301, June.
    11. Wagner, Joachim & Schnabel, Claus & Schank, Thorsten, 2004. "Exporting firms do not pay higher wages, ceteris paribus : First evidence from linked employer-employee data," Discussion Papers 27, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    12. Thorsten Schank & Claus Schnabel & Joachim Wagner, 2016. "Do Exporters Really Pay Higher Wages? First Evidence from German Linked Employer–Employee Data," World Scientific Book Chapters,in: Microeconometrics of International Trade, chapter 5, pages 177-213 World Scientific Publishing Co. Pte. Ltd..
    13. Fugazza, Marco & Robert-Nicoud, Frédéric, 2006. "Can South-South trade Liberalisation Stimulate North-South Trade ?," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 21, pages 234-253.
    14. Arne Bigsten & Mulu Gebreeyesus, 2009. "Firm Productivity and Exports: Evidence from Ethiopian Manufacturing," Journal of Development Studies, Taylor & Francis Journals, vol. 45(10), pages 1594-1614.
    15. Ana M. Fernandes & Alberto E. Isgut, 2005. "Learning-by-Doing, Learning-by-Exporting, and Productivity: Evidence from Colombia," DEGIT Conference Papers c010_018, DEGIT, Dynamics, Economic Growth, and International Trade.
    16. Sébastien Breau & David L. Rigby, 2006. "Is There Really an Export Wage Premium? A Case Study of Los Angeles Using Matched Employee-Employer Data," Working Papers 06-06, Center for Economic Studies, U.S. Census Bureau.
    17. Marion DOVIS, 2009. "Le Processus De Sélection Des Entreprises Espagnoles Sur Le Marché Des Exportations," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 29, pages 181-202.
    18. Trofimenko, Natalia, 2005. "Learning by Exporting: Does It Matter Where One Learns? Evidence from Colombian Manufacturing Plants," Kiel Working Papers 1262, Kiel Institute for the World Economy (IfW).
    19. Pedro Martins & Yong Yang, 2009. "The impact of exporting on firm productivity: a meta-analysis of the learning-by-exporting hypothesis," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(3), pages 431-445, October.
    20. Sanghoon Ahn & Kyoji Fukao & Hyeog Ug Kwon, 2005. "The Internationalization and Performance of Korean and Japanese Firms: An Empirical Analysis Based on Micro-data," Discussion papers 05008, Research Institute of Economy, Trade and Industry (RIETI).
    21. Tomasz Serwach, 2012. "Why Learning by Exporting May Not Be As Common As You Think and What It Means for Policy," International Journal of Management, Knowledge and Learning, International School for Social and Business Studies, Celje, Slovenia, pages 157-172.
    22. Sanghoon Ahn, 2010. "Does Exporting Raise Productivity? Evidence from Korean Microdata," Working Papers id:3302, eSocialSciences.
    23. Cebeci, Tolga, 2014. "Impact of export destinations on firm performance," Policy Research Working Paper Series 6743, The World Bank.
    24. repec:wsi:serxxx:v:50:y:2005:i:spec0:n:s0217590805002050 is not listed on IDEAS
    25. Hansen, Thorsten, 2010. "Exports and Productivity: An Empirical Analysis of German and Austrian Firm-Level Performance," Discussion Papers in Economics 11466, University of Munich, Department of Economics.

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    JEL classification:

    • F1 - International Economics - - Trade
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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