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A Note on Detecting Learning by Exporting

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  • De loecker, Jan

Abstract

Learning by exporting refers to the mechanism whereby firms improve their performance (productivity) after entering export markets. Although this mechanism is often mentioned in policy documents, a significant share of econometric studies has not found evidence for this hypothesis. This paper shows that the methods used to come to the latter conclusion suffer from a large internal inconsistency: they rely on an exogenous evolving productivity process. I show how recent proxy estimators can accommodate endogenous productivity processes such as learning by exporting. I rely on my framework to discuss the bias introduced by ignoring such a process and how adjusting for it can lead to detect significant productivity gains upon export entry. I estimate my model on standard firm-level data and find substantial additional productivity gains from entering export markets.

Suggested Citation

  • De loecker, Jan, 2010. "A Note on Detecting Learning by Exporting," CEPR Discussion Papers 8121, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:8121
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    More about this item

    Keywords

    Productivity; Learning by exporting;

    JEL classification:

    • F0 - International Economics - - General
    • L6 - Industrial Organization - - Industry Studies: Manufacturing

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