Productivity Before and After Exports: The Case of Korean Food Processing Firms

Munisamy Gopinath, Hanho Kim and Sooil Kim

No 21271, 2006 Annual meeting, July 23-26, Long Beach, CA from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: In this article, we analyze the export decision of Korean manufacturing firms with emphasis on those in the food processing sector. A dynamic discrete choice model based on sunk (entry or exit) costs is specified for export behavior. Data for 1996-2002 on 1022 Korean firms, of which 95 are in the food processing sector, are assembled. A nonparametric measure of firm productivity is derived for use in the export-behavior (probit) model. Results show the significant effects of sunk costs on the export decision of Korean firms. A firm-size effect on export behavior is identified for food processing firms, unlike in the case of their manufacturing counterparts. We also find a firm-size effect on productivity in all manufacturing firms.

Keywords: Agribusiness (search for similar items in EconPapers)
Pages: 20
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea06:21271

DOI: 10.22004/ag.econ.21271

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