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Exporting and Technology Adoption in Brazil

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  • Cirera,Xavier
  • Comin,Diego Adolfo
  • Vargas Da Cruz,Marcio Jose
  • Kyung Min Lee
  • Soares Martins Neto,Antonio

Abstract

There is limited evidence on the role of participating in international trade in the diffusion oftechnologies. This paper analyzes the impact of exporting on firms’ adoption of more sophisticated technologies, using anovel dataset, the Firm-level Adoption of Technology survey, which includes more than 1,500 firms in Brazil. The surveyprovides detailed information on the use of more than 300 technologies, combined with data from Brazil’s census offormal workers and export data from the Ministry of Trade. To address critical endogeneity concerns, the analysisapplies difference-in-differences with multiple periods to examine the effects of entering export markets on technologyadoption. The findings show that exporting has a positive effect on firms’ likelihood of adopting advancedtechnologies in business functions related to business administration, production planning, supply chainmanagement, and quality control, which are important for managing tasks associated with export activities.

Suggested Citation

  • Cirera,Xavier & Comin,Diego Adolfo & Vargas Da Cruz,Marcio Jose & Kyung Min Lee & Soares Martins Neto,Antonio, 2023. "Exporting and Technology Adoption in Brazil," Policy Research Working Paper Series 10454, The World Bank.
    • Handle: RePEc:wbk:wbrwps:10454
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