The export-productivity link for Brazilian manufacturing firms

Xavier Cirera, Daniel Lederman, Juan A. Mañez and Maria Engracia Rochina Barrachina
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Juan A. Mañez: University of Valencia and ERICES

No 1505, Working Papers from Department of Applied Economics II, Universidad de Valencia

Abstract: This paper explores the link between exports and total factor productivity (TFP) for Brazilian manufacturing firms over the period 2000-2008, both under the assumption of an exogenous or an endogenous law of motion for productivity. We first obtain TFP estimates under each alternative assumption following Wooldridge (2009) GMM procedure. Second, using stochastic dominance techniques we analyse whether the ex-ante most productive firms are those that start exporting (self-selection hypothesis). Finally, we test whether exporting boosts firms TFP growth (learning-by-exporting hypothesis) using matching techniques, to control for the possibility that selection into exports may not be a random process. Our results confirm the self-selection hypothesis and show that starting to export yields firms an extra TFP growth that emerges since the first year exporting but lasts only from this year to the next. Further, this extra TFP growth is much higher under the assumption of an endogenous law of motion for productivity, which reinforces the importance of accounting for firm export status to study the evolution of productivity.

Keywords: TFP; export status; exogenous vs. endogenous Markov; semi-parametric approach; self-selection; stochastic dominance; learning-by exporting; matching techniques. (search for similar items in EconPapers)
Date: 2015-05
New Economics Papers: this item is included in nep-cse, nep-eff and nep-int
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: The export-productivity link for Brazilian manufacturing firms (2015)
Working Paper: The export-productivity link for Brazilian manufacturing firms (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:eec:wpaper:1505

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