Does Export Experience Improve Firms' Productivity? Evidence from Indonesia.

Once a firm enters a foreign market, its productivity should increase thanks to the exposure to new knowledge and experience abroad. We test this hypothesis of 'learning-by-exporting' by scrutinising export experience while controlling for self-selection effect. To measure learning, previous studies...

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Publicado en:Journal of Development Studies Vol. 57; no. 12; pp. 2156 - 2177
Autores principales: Pane, Deasy D., Patunru, Arianto A.
Formato: Artículo
Publicado: Taylor & Francis Ltd Dec 2021
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Acceso en línea:Ver este registro en EBSCOhost
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      dt: Dec 2021
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        10.1080/00220388.2021.1965126
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        atl: Does Export Experience Improve Firms' Productivity? Evidence from Indonesia.
      aug:
        au:
          Pane, Deasy D.
          Patunru, Arianto A.
        affil:
          National Development Planning Agency, Republic of Indonesia
          Arndt-Corden Department of Economics, Crawford School of Public Policy, Australian National University, Canberra, Australia
      su:
        Indonesia
        Access to information
        Motor vehicles
        Industrial productivity
        International markets
        Exports
      sug:
        subj:
          Access to information
          Motor vehicles
          Industrial productivity
          International markets
          Indonesia
          Motor Vehicle Supplies and New Parts Merchant Wholesalers
          Recreational and other motor vehicles merchant wholesalers
          Automobile and Other Motor Vehicle Merchant Wholesalers
          Exports
      keyword:
        export experience
        learning-by-exporting
        productivity
        export experience
        learning-by-exporting
        productivity
      ab: Once a firm enters a foreign market, its productivity should increase thanks to the exposure to new knowledge and experience abroad. We test this hypothesis of 'learning-by-exporting' by scrutinising export experience while controlling for self-selection effect. To measure learning, previous studies rely on productivity before- and after exporting, or on previous export participation, and so do not consider the evolving experience of exporting firms. In contrast, we use 'export age' – the number of years a firm is engaged in exporting activities. Based on Indonesian firm-level data from 2000 to 2012, we find that exporter's productivity increases with export age, but the effect decreases once the firm becomes more experienced. Such effect is larger for relatively bigger firms and for those in certain industries in the footloose, capital-intensive sectors, such as motor vehicles and chemicals production. A policy implication of our study is that easier export procedure and access to information about foreign markets will be beneficial for firms, especially the new exporters.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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