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Export and firms' performance in North Macedonia: self selection or learning by doing?

Biljana Jovanovic ()
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Biljana Jovanovic: National Bank of the Republic of North Macedonia

No 2020-01, Working Papers from National Bank of the Republic of North Macedonia

Abstract: Export is an important contributor to growth with numerous direct and indirect macroeconomic benefits. Moreover, firms engaged in exporting activity tend to have superior characteristics compared to their non-exporting peers. The paper is focused on identifying reasons behind this superiority of exporters by testing two hypothesis – self-selection and learning by doing hypothesis. The analysis is done on a sample of over 1,900 manufacturing firms annually, for the period 2013-2017. In line with previous empirical research, we found evidence in favor of the self-selection hypothesis. This means that more successful and more productive firms become exporters as a result of their performance i.e. they self-select themselves in the international market. In addition, our results suggest that, complementary to the self-selection process, there are some evidence of the validity of learning by doing hypothesis.

Keywords: self selection; learning by doing; export; matching (search for similar items in EconPapers)
JEL-codes: D22 D24 F14 (search for similar items in EconPapers)
Pages: 28
Date: 2020
New Economics Papers: this item is included in nep-int and nep-tra
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