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Trade and Productivity in a Transition Economy: the Role of Industry and Export Destination

Carlo Reggiani () and Yevgeniya Shevtsova

Journal of Industry, Competition and Trade, 2018, vol. 18, issue 3, 395-428

Abstract: Abstract This paper focuses on the joint role of industry technology intensity and export market characteristics in the analysis of export-related productivity gains. Using a unique database of Ukrainian manufacturing firms in 2000-06, we classify all manufacturing sectors according to their technology intensity and estimate destination-specific learning by exporting effects separately for firms operating in high and low technology sectors. New exporters in high technology sectors enjoy robust long-term productivity growth premia when targeting advanced export markets, consistent with learning through exports. Export entrants in low technology sectors, instead, enjoy mostly short-term productivity improvements regardless of the export destination. Our findings suggest that the systematic distinction between the technology intensity of various industries is a relevant dimension for empirical studies on destination-specific learning by exporting.

Keywords: Exports; TFP; Destination-specific learning-by-exporting effect; Propensity score matching; Difference-in-differences; Semiparametric estimator (search for similar items in EconPapers)
JEL-codes: D24 F14 L25 (search for similar items in EconPapers)
Date: 2018
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