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Productivity, Innovations and Exports in the Chilean Manufacturing Industry

Roberto Alvarez and Alvaro Garcia-Marin

Working Papers Central Bank of Chile from Central Bank of Chile

Abstract: This paper studies the relationship among exports, productivity and technological innovation for Chilean manufacturing plants. Firstly, we address the causality between exporting and plant productivity. Our results, consistently with most of the evidence for other economies, suggest that only the more productive plants are able to export, but there is not strong support for the hypothesis of learning by exporting. In addition, we explore whether there are other types of learning originated in the exporting activity. In contrast to recent evidence for other economies, we do not find positive effects of regional and industry agglomeration of exporters on the probability of exporting. Finally, we analyze if innovation is associated with improvements in firm export performance. Using information about product and process innovation and expenditure in R&D, we do not find evidence that the probability of exporting is affected by innovation.

Date: 2008-07
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