Factor-Biased Efficiency Gains from Exporting: Evidence from Colombia

Joonkyo Hong and Davide Luparello

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Abstract: New exporters adopt new technologies, which may reorganize production rather than uniformly increase output, so efficiency gains can vary across inputs. We examine such gains across worker types in Colombian manufacturing, 1981-1991. Developing and applying a model of production and export entry, we find export entry raises the efficiency of unskilled labor by 9.4% annually. We detect no such change for skilled-labor and neutral efficiency. These factor-biased effects imply a 2% annualized rise in total factor productivity. We estimate that the two worker types are complements, so exporters produce more with relatively less unskilled labor, raising skill intensity.

Date: 2024-07, Revised 2026-08
New Economics Papers: this item is included in nep-eff and nep-int
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