Does it matter where you export and does productivity rise with exporting?
JOURNAL OF INTERNATIONAL TRADE & ECONOMIC DEVELOPMENT, vol.30, no.5, pp.766-791, 2021 (SSCI, Scopus)
- Publication Type: Article / Article
- Volume: 30 Issue: 5
- Publication Date: 2021
- Doi Number: 10.1080/09638199.2021.1909108
- Journal Name: JOURNAL OF INTERNATIONAL TRADE & ECONOMIC DEVELOPMENT
- Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, Academic Search Premier, IBZ Online, International Bibliography of Social Sciences, ABI/INFORM, Business Source Elite, Business Source Premier, EconLit, Geobase
- Page Numbers: pp.766-791
- Keywords: Exports, productivity, trade structure, country diversification, mark-up
- Hacettepe University Affiliated: Yes
Abstract
Utilizing a comprehensive dataset for Turkish manufacturing firms, we analyse differentials in the post-entry effects on productivity of exporting to markets with different income levels. We employ propensity score matching techniques with multiple treatments, together with a differences-in-differences (DiD) methodology. Controlling for firm level mark-ups, we explore whether the post-entry effects on productivity are driven by changes in physical productivity. The results confirm the learning-by-exporting hypothesis, and suggest physical productivity gains, in particular for exports to high income countries as opposed to middle low-income countries, even after controlling for the composition of exports. This suggests that where a firm export does matter for productivity growth.