Learning by exporting or self-selection into exporting?. Issue 2 (2nd July 2020)

• Record Type: Journal Article
• Authors: Kiendrebeogo, Youssouf
• Is Part Of: Middle East development journal. Volume 12:Issue 2(2020)
• Page Start: 304
• Page End: 325
• Publication Date: 2020-07-02
• Subjects: Exports -- self-selection -- learning from exporting -- productivity; Middle East -- Economic conditions -- 1979- -- Periodicals; Economic forecasting -- Middle East -- Periodicals; Africa -- Economic conditions -- 1960- -- Periodicals; Economic forecasting -- Africa -- Periodicals; Economic forecasting; Economic history; Africa; Middle East; Periodicals; 338.95605
• DOI: 10.1080/17938120.2020.1756105
• Languages: English
• ISSNs: 1793-8120

Abstract

ABSTRACT: This paper explores the export-productivity relationship using firm-level data from Egypt over the 2003–2008 period. Previous studies using data from developed countries suggest that self-selection is the main driver of the exporter premium. Using a propensity-score matching difference-in-difference approach, we find that both labor productivity and total factor productivity are significantly higher for exporters than for non-exporters. On average, labor productivity and total factor productivity are, respectively, 43% and 61% higher for exporting firms than for domestically-oriented firms. Accounting for the level of development of destination countries, we find that this export premium is due to a learning-by-exporting process rather than just a self-selection of more productive firms into exporting. In contrast to exporters to OECD countries, exporters to Non-OECD countries self-select into export markets, signaling the importance of the technical assistance from OECD buyers.