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Productivity, Markups and Export Intensity: Evidence from Korean Manufacturing

Author

Listed:
  • Yong-Seok Choi

    (Kyung Hee University)

  • Siwook Lee

    (Myongji University)

Abstract

This paper empirically investigates the impacts of export intensity on plant-level productivity growth and markups by assessing Korean manufacturing data between 1992 and 2002. Our Generalized Propensity Score estimation results suggest an inverted U-shaped relationship between export intensity and productivity growth, which is consistent with Fryges and Wagner (2007). At the same time, we also find a similar pattern in the export intensity-markup nexus. Our results generally imply that increasing export intensity up to a certain threshold provides a better opportunity for exporters to improve productivity and charge higher markups than non-exporters, but a plant whose export intensity is beyond this threshold may not fully benefit from exporting activity as excessive exposure to foreign markets causes higher market uncertainties and internationalization costs.

Suggested Citation

  • Yong-Seok Choi & Siwook Lee, 2013. "Productivity, Markups and Export Intensity: Evidence from Korean Manufacturing," Korean Economic Review, Korean Economic Association, vol. 29, pages 329-350.
    • Handle: RePEc:kea:keappr:ker-20131231-29-2-04
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    References listed on IDEAS

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    2. Dai, Xiaoyong & Sun, Zao & Liu, Hang, 2018. "Disentangling the effects of endogenous export and innovation on the performance of Chinese manufacturing firms," China Economic Review, Elsevier, vol. 50(C), pages 42-58.

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    More about this item

    Keywords

    Export Intensity; Markups; Total Factor Productivity; Generalized Propensity Score;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L6 - Industrial Organization - - Industry Studies: Manufacturing

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