Is there Evidence of Learning-by-Exporting in Turkish Manufacturing Industries?

Mahmut Yasar, Philip Garcia, Carl Nelson () and Roderick Rejesus

International Review of Applied Economics, 2007, vol. 21, issue 2, 293-305

Abstract: Exporting has always been thought of as one tool to improve productivity and, consequently, to spur economic growth in low- to middle-income economies. However, empirical evidence of this so-called 'learning-by-exporting' effect has been limited. This article determines whether learning-by-exporting is evident in two Turkish manufacturing sectors—the textile and apparel (T&A) and the motor vehicle and parts (MV&P) industries. A semi-parametric estimator that controls for problems associated with simultaneity and unobserved plant heterogeneity is used to test the learning-by-exporting hypothesis. After controlling for these issues, our results suggest statistically stronger learning-by-exporting effects in the T&A than in the MV&P industry. The highly concentrated and capital-intensive nature of the MV&P industry is the main reason for the lower learning-by-exporting effect in this sector. From a policy perspective, this implies that targeting export-enhancing policies to industries with significant learning-by-exporting effects may lead to more productivity gains and would better stimulate an export-led growth.

Keywords: Learning-by-exporting; heterogeneity; productivity; trade liberalization (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (8)

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DOI: 10.1080/02692170701189193

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