Learning by Exporting: Evidence from India

Apoorva Gupta, Ila Patnaik and Ajay Shah (ajayshah@mayin.org)
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Ajay Shah: National Institute of Public Finance and Policy, Postal: New Delhi, India

No 119, Working Papers on Regional Economic Integration from Asian Development Bank

Abstract: The empirical evidence on learning by exporting is mixed. In this paper, we examine whether productivity growth among Indian exporters is higher than that of non-exporters. After controlling for self-selection into exporting, we do not find evidence for learning by exporting in a panel of manufacturing firms. There is also no evidence of heterogeneity in learning by exporting with regard to age, size, or productivity. The study finds that exporters grow bigger at a significantly higher rate than their domestic counterparts. But the growth in size does not appear to translate into growth in productivity after entry into foreign markets. Instead, exporters exhibit a boost in productivity 1 year prior to entering export markets.

Keywords: Exports; self-selection; learning by exporting (LBE); firm productivity (search for similar items in EconPapers)
JEL-codes: D24 F43 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2013-08-01
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:ris:adbrei:0119

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