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Learning-by-Exporting Revisited - the role of intensity and persistence
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Learning-by-Exporting Revisited - the role of intensity and persistence

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  • Andersson, Martin

    (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

  • Lööf, Hans

    (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

Abstract

Two not mutually exclusive hypotheses can explain the empirically established export premium: self-selection of more productive firms into export markets and learning-by-exporting. We reassess the learning-by-exporting hypothesis and maintain that the scope for learning is related to the persistence and the intensity of a firm’s exporting activity. Using a rich panel of Swedish manufacturing firms, we show that there is a causality going from exports to productivity only for persistent exporters with high export-intensity. No such relationship is found for either temporary exporters or persistent exporters with low export-intensity. Learning-by-exporting in the form of a causality going from exports to productivity only pertains to firms that persistently export a large fraction of their sales on a global scale. Results are robust to the inclusion of several firm characteristics such as imports, physical capital, firm size, skilled labour, capital structure, corporate ownership structure, and industry classification.

Suggested Citation

  • Andersson, Martin & Lööf, Hans, 2008. "Learning-by-Exporting Revisited - the role of intensity and persistence," Working Paper Series in Economics and Institutions of Innovation 149, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    • Handle: RePEc:hhs:cesisp:0149
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    More about this item

    Keywords

    export productivity premium; learning-by-exporting; productivity dynamics; panel data; dynamic models; temporary and persistent exporters;
    All these keywords.

    JEL classification:

    • C16 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Econometric and Statistical Methods; Specific Distributions
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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