Does it matter where you export and does productivity rise with exporting?

Başak Dalgıç, Burcu Fazlıoğlu and Michael Gasiorek

The Journal of International Trade & Economic Development, 2021, vol. 30, issue 5, 766-791

Abstract: Utilizing a comprehensive dataset for Turkish manufacturing firms, we analyse differentials in the post-entry effects on productivity of exporting to markets with different income levels. We employ propensity score matching techniques with multiple treatments, together with a differences-in-differences (DiD) methodology. Controlling for firm level mark-ups, we explore whether the post-entry effects on productivity are driven by changes in physical productivity. The results confirm the learning-by-exporting hypothesis, and suggest physical productivity gains, in particular for exports to high income countries as opposed to middle low-income countries, even after controlling for the composition of exports. This suggests that where a firm export does matter for productivity growth.

Date: 2021
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DOI: 10.1080/09638199.2021.1909108

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