Learning by Exporting: Evidence from India
Ila Patnaik () and
Ajay Shah ()
No 119, Working Papers on Regional Economic Integration from Asian Development Bank
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)
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