Accounting for Learning-by-Doing in Foreign Trade

Namsuk Choi
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Namsuk Choi: Korea Economic Research Institute

Korean Economic Review, 2011, vol. 27, 115-138

Abstract: This paper attempts to account comprehensively for the role of learning-by-doing (LBD) in foreign trade. The importance of LBD on export performance is accounted for at various levels of aggregation, such as LBD at the product level, LBD at the market level, and more specifically, LBD at the market-and-product level. Using panel data covering 130 countries and 1,003 products during the period between 1962 and 2000, this paper finds a positive but concave relationship between foreign trade and LBD at various export levels, even after controlling for country income effects, openness, and per-capita GDP growth rates. Such relationship is stronger and less bounded at the product-specific level. However, with more meaningful changes, LBD at the market-specific level becomes more important than that at the product-specific level over a longer period of time.

Keywords: Learning-by-Doing; Human Capital; Export Margin; Trade (search for similar items in EconPapers)
JEL-codes: F10 I20 J24 O11 O31 O40 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (1)

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