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Learning-by-Exporting, Introduction of New Products, and Product Rationalization: Evidence from Korean Manufacturing

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  • Hahn Chin Hee

    (Gachon University)

Abstract

Utilizing a previously unexplored plant-product matched dataset in the Korean manufacturing sector, this paper examines the impact of exporting on firms’ productivity and the mechanism by which it operates. We find strong evidence for the learning-by-exporting hypothesis. We also find that exporting induces plants to introduce new products and rationalize their products beginning from one year prior to, and until two years after, export market entry. The synchronous responses of product churning and TFP suggest that new-product introduction and product rationalization are indeed one mechanism of the learning-by-exporting effect. Finally, we find that plants increase, rather than decrease, their product scope after exporting, in contrast with the prediction from the recent theories of multi-product firms.

Suggested Citation

  • Hahn Chin Hee, 2012. "Learning-by-Exporting, Introduction of New Products, and Product Rationalization: Evidence from Korean Manufacturing," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 12(1), pages 1-37, May.
  • Handle: RePEc:bpj:bejeap:v:12:y:2012:i:1:n:24
    DOI: 10.1515/1935-1682.2705
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    2. Hahn, Chin Hee, 2021. "How do Export Pioneers Emerge and How are They Related to Product Creators?," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 43(1), pages 1-27.
    3. Chin Hee Hahn & Keiko Ito & Dionisius Narjoko, 2016. "Exporting and Upgrading of Product Portfolio: Evidence from Korea, Japan and Indonesia," Asian Economic Journal, East Asian Economic Association, vol. 30(4), pages 349-373, December.
    4. Hahn, Chin Hee & Choi, Yong-Seok, 2021. "Learning-to-export Effect as a Response to Export Opportunities: Micro-evidence from Korean Manufacturing," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 43(4), pages 1-21.
    5. Nancy Stokey, 2015. "Catching up and falling behind," Journal of Economic Growth, Springer, vol. 20(1), pages 1-36, March.

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