Firm Productivity and Exports: Evidence from Ethiopian manufacturing
Arne Bigsten () and
No 303, Working Papers in Economics from University of Gothenburg, Department of Economics
This paper examines the causal relationship between exporting and productivity using a ten years long plant-level panel data set from an annual census of Ethiopian manufacturing, rarely available in the sub-Saharan Africa. We exploited its length to trace the trajectory of TFP and other productivity measures of groups of firms classified by their export history. We then tested learning-by-exporting using a one-step system-GMM approach with the export-status included directly in the production function. We addressed potential endogeneity problems by using instrumental variables, and also applied a matching analysis to address potential selection bias. We found strong evidence of not only self-selection but also learning-by-exporting. Depending on the specification previous exporting appears to have shifted the production function by 15-32 %. Exporters had on average three times more employees, and paid 1.6 times higher average wage than those of non-exporters.
Keywords: Productivity; exports; Ethiopia; manufacturing (search for similar items in EconPapers)
JEL-codes: D21 F14 L60 O14 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-afr, nep-dev, nep-eff and nep-int
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Journal Article: Firm Productivity and Exports: Evidence from Ethiopian Manufacturing (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:gunwpe:0303
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