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Productivity, Innovation and Exportations in the Chilean Manufacturing Industry

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Author Info
Roberto Álvarez
Álvaro García
Abstract

This paper studies the relationship among exports, productivity and technological innovation for Chilean manufacturing plants. Firstly, we address the causality between exporting and plant productivity. Our results, consistently with most of the evidence for other economies, suggest that only the more productive plants are able to export, but there is not strong support for the hypothesis of learning by exporting. In addition, we explore whether there are other types of learning originated in the exporting activity. In contrast to recent evidence for other economies, we do not find positive effects of regional and industry agglomeration of exporters on the probability of exporting. Finally, we analyze if innovation is associated with improvements in firm export performance. Using information about product and process innovation and expenditure in R&D, we do not find evidence that the probability of exporting is affected by innovation.

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Paper provided by Central Bank of Chile in its series Working Papers Central Bank of Chile with number 476.

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Date of creation: Jul 2008
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Handle: RePEc:chb:bcchwp:476

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  1. Stefan Lachenmaier & Ludger Wößmann, 2006. "Does innovation cause exports? Evidence from exogenous innovation impulses and obstacles using German micro data," Oxford Economic Papers, Oxford University Press, vol. 58(2), pages 317-350, April. [Downloadable!] (restricted)
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  2. Greenaway, David & Kneller, Richard, 2008. "Exporting, productivity and agglomeration," European Economic Review, Elsevier, vol. 52(5), pages 919-939, July. [Downloadable!] (restricted)
  3. De Loecker, Jan, 2007. "Do exports generate higher productivity? Evidence from Slovenia," Journal of International Economics, Elsevier, vol. 73(1), pages 69-98, September. [Downloadable!] (restricted)
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  4. Andrew B. Bernard & Jonathan Eaton & J. Bradford Jensen & Samuel Kortum, 2003. "Plants and Productivity in International Trade," American Economic Review, American Economic Association, vol. 93(4), pages 1268-1290, September. [Downloadable!]
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  5. Roberts, Mark J & Tybout, James R, 1997. "The Decision to Export in Colombia: An Empirical Model of Entry with Sunk Costs," American Economic Review, American Economic Association, vol. 87(4), pages 545-64, September. [Downloadable!] (restricted)
  6. Richard Blundell & Monica Costa Dias, 2002. "Alternative approaches to evaluation in empirical microeconomics," CeMMAP working papers CWP10/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies. [Downloadable!]
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  7. Andrew B. Bernard & J. Bradford Jensen, 2004. "Why Some Firms Export," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 561-569, 04. [Downloadable!] (restricted)
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