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Exports and Productivity: Does Destination Matter?

Author

Listed:
  • Juan Barboni

    (Analista de Riesgo, Despegar (Montevideo, Uruguay))

  • Nicolas Ferrari

    (Axiona Sociedad de Soluciones (Montevideo, Uruguay))

  • Hanna Melgarejo

    (Agencia de Compras y Contrataciones Estatales (Montevideo, Uruguay))

  • Adriana Peluffo

    (Universidad de la República, Instituto de Economía (Montevideo, Uruguay))

Abstract

In this work, we analyze the effect of export destinations on Total Factor Productivity (TFP) of manufacturing Uruguayan firms for the period 1997-2006. We study two effects: self-selection and learning by exporting. There is evidence of self-selection with a stronger effect for firms exporting to developed countries. Nevertheless, applying transition groups methodology in order to mitigate endogeneity issues, there is no evidence that exporting to developed countries enhances productivity through learning by exporting. However, evidence of learning by exporting is found for those firms starting to export to less developed countries. These findings suggest an international strategy through which firms reach gains in productivity exporting to markets with lower entry cost, and once they have learned and improved their productivity, are in a better position to enter more developed countries. / En este trabajo se analiza el efecto del destino de las exportaciones sobre la productividad total de los factores de las empresas manufactureras uruguayas, para el periodo 1997-2006. Se estudian dos efectos: autoselección y aprendizaje a través de las exportaciones. Se encuentra evidencia de autoselección con un efecto mayor para las empresas que exportan a los países desarrollados. Sin embargo, aplicando la metodología de grupos de transición, a efectos de mitigar los problemas de endogeneidad, no hay evidencia de que las exportaciones a países desarrollados aumente la productividad a través del aprendizaje por exportar. Sin embargo, si hay evidencia de aprendizaje por exportar para aquellas empresas que empiezan a exportar a países de la región, menos desarrollados. Estos hallazgos sugieren una estrategia internacional en la cual las firmas logran ganancias de productividad exportando a mercados con menores costos de entrada, y una vez que han adquirido experiencia-aprendido- y aumentado su productividad, están en una mejor posición para entrar en los mercados de los países desarrollados.

Suggested Citation

  • Juan Barboni & Nicolas Ferrari & Hanna Melgarejo & Adriana Peluffo, 2012. "Exports and Productivity: Does Destination Matter?," Revista de Economía y Estadística, Universidad Nacional de Córdoba, Facultad de Ciencias Económicas, Instituto de Economía y Finanzas, vol. 50(1), pages 25-58, Diciembre.
    • Handle: RePEc:ief:reveye:v:50:y:2012:i:1:p:25-58
    DOI: 10.55444/2451.7321.2012.v50.n1.10250
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    References listed on IDEAS

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    Cited by:

    1. Adriana Peluffo & Ernesto Silva, 2016. "New Stuff or Better Ways: What Matters to Survive International Markets?," Documentos de Trabajo (working papers) 16-07, Instituto de Economía - IECON.
    2. Adriana Peluffo, 2021. "The Impact of Export Destination on Skills in a Middle-Income Country," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 13(3), pages 317-340, September.
    3. Adriana Peluffo & Inmaculada Martinez-Zarzoso & Ernesto Silva, 2020. "New stuff or better ways: what matters to access international markets?," Journal of Applied Economics, Taylor & Francis Journals, vol. 23(1), pages 656-678, January.

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    More about this item

    Keywords

    Total factor productivity; exports; destination of exports; self- selection; learning by exporting;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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