High productivity before or after exports? An empirical analysis of Korean manufacturing firms

Soo-Il Kim, Munisamy Gopinath and Hanho Kim

Journal of Asian Economics, 2009, vol. 20, issue 4, 410-418

Abstract: This study investigates whether exporting is a cause or an effect of high productivity of firms' in the Korean manufacturing industries. For this purpose, a panel database is assembled with 1335 firms from eight Korean manufacturing industries during 1997-2003. Evidence that high productivity causes exporting, referred to as self-selection, is found in three out of eight industries. However, we do not find support for the hypothesis that high productivity is affected by exporting, except in one industry. Sunk-cost or previous-export-experience effect on the current export status is statistically significant and robust across industries unlike that of firms' productivity and size.

Keywords: Export; decision; Korean; manufacturing; Productivity; and; trade (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:asieco:v:20:y:2009:i:4:p:410-418

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