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Learning-by-doing, learning-by-exporting, and productivity : evidence from Colombia

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  • Fernandes, Ana M.
  • Isgut, Alberto E.

Abstract

The empirical evidence on whether participation in export markets increases plant-level productivity has been inconclusive so far. The authors explain this inconclusiveness by drawing on Arrow's (1962) characterization of learning-by-doing, which suggests focusing on young plants and using measures of export experience rather than export participation. They find strong evidence of learning-by-exporting for young Colombian manufacturing plants between 1981 and 1991: total factor productivity increases 4-5 percent for each additional year a plant has exported, after controlling for the effect of current exports on total factor productivity. Learning-by-exporting is more important for young than for old plants and in industries that deliver a larger percentage of their exports to high-income countries.

Suggested Citation

  • Fernandes, Ana M. & Isgut, Alberto E., 2005. "Learning-by-doing, learning-by-exporting, and productivity : evidence from Colombia," Policy Research Working Paper Series 3544, The World Bank.
  • Handle: RePEc:wbk:wbrwps:3544
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