The Effect of Exporting on Creative Destruction and a Plant's Average Product Characteristics in Japan and Korea

Chin Hee Hahn and Keiko Ito

The Developing Economies, 2020, vol. 58, issue 3, 195-226

Abstract: This paper examines whether exporting activity contributes to the promotion of creative destruction and the upgrading of a plant's product portfolio. We first present evidence that exporters tend to produce, on average, products with higher attributes than non‐exporters. Next, we find evidence that exporting improves a plant's average product attributes, utilizing the propensity score difference‐in‐difference matching technique. Further examination of the mechanism reveals that the positive effect of exporting on a plant's average product attributes is more likely to be realized through its effect of adding higher‐attribute products, a key feature of creative destruction within a firm, rather than through share changes among continuously produced products. The results suggest that exporting might have contributed to the sustained economic growth of Japan and Korea by promoting creative destruction

Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/deve.12247

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:deveco:v:58:y:2020:i:3:p:195-226

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0012-1533

Access Statistics for this article

The Developing Economies is currently edited by Katsuji Nakagane

More articles in The Developing Economies from Institute of Developing Economies Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().