Does it matter where you export and does productivity rise with exporting?


DALGIÇ B. , FAZLIOĞLU B., Gasiorek M.

JOURNAL OF INTERNATIONAL TRADE & ECONOMIC DEVELOPMENT, 2021 (Journal Indexed in SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume:
  • Publication Date: 2021
  • Doi Number: 10.1080/09638199.2021.1909108
  • Title of Journal : JOURNAL OF INTERNATIONAL TRADE & ECONOMIC DEVELOPMENT

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.