Productivity, Markups and Export Intensity: Evidence from Korean Manufacturing

Yong-Seok Choi () and Siwook Lee
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Siwook Lee: Myongji University

Korean Economic Review, 2013, vol. 29, 329-350

Abstract: This paper empirically investigates the impacts of export intensity on plant-level productivity growth and markups by assessing Korean manufacturing data between 1992 and 2002. Our Generalized Propensity Score estimation results suggest an inverted U-shaped relationship between export intensity and productivity growth, which is consistent with Fryges and Wagner (2007). At the same time, we also find a similar pattern in the export intensity-markup nexus. Our results generally imply that increasing export intensity up to a certain threshold provides a better opportunity for exporters to improve productivity and charge higher markups than non-exporters, but a plant whose export intensity is beyond this threshold may not fully benefit from exporting activity as excessive exposure to foreign markets causes higher market uncertainties and internationalization costs.

Keywords: Export Intensity; Markups; Total Factor Productivity; Generalized Propensity Score (search for similar items in EconPapers)
JEL-codes: F1 L1 L6 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (2)

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