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A note on detecting learning by exporting

Author: Jan de Loecker; National Bureau of Economic Research.
Publisher: Cambridge, Mass. : National Bureau of Economic Research, ©2010.
Series: Working paper series (National Bureau of Economic Research), no. 16548.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
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  Read more...
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Additional Physical Format: Print version:
Loecker, Jan de.
Note on detecting learning by exporting.
Cambridge, Mass. : National Bureau of Economic Research, ©2010
(DLC) 2011655795
Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Jan de Loecker; National Bureau of Economic Research.
OCLC Number: 682678422
Description: 1 online resource (19 pages).
Series Title: Working paper series (National Bureau of Economic Research), no. 16548.
Responsibility: Jan De Loecker.

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.

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