Learning-by-Doing, Learning-by-Exporting, and Productivity : Evidence from Colombia

The empirical evidence on whether participation in export markets increases plant-level productivity has been inconclusive so far. The authors explain this inconclusiveness by drawing on Arrow's (1962) characterization of learning-by-doing, which suggests focusing on young plants and using measures of export experience rather than export participation. They find strong evidence of learning-by-exporting for young Colombian manufacturing plants between 1981 and 1991: total factor productivity increases 4-5 percent for each additional year a plant has exported, after controlling for the effect of current exports on total factor productivity. Learning-by-exporting is more important for young than for old plants and in industries that deliver a larger percentage of their exports to high-income countries.

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Bibliographic Details
Main Authors: Isgut, Alberto E., Fernandes, Ana M.
Language:English
Published: World Bank, Washington, DC 2005-03
Subjects:ACCOUNTING, ANNUAL OBSERVATIONS, AVERAGE VARIABLE COSTS, CAPITAL GOODS, CONSUMERS, DEVELOPMENT POLICIES, DIMINISHING RETURNS, EMPIRICAL ANALYSIS, EMPIRICAL EVIDENCE, EMPIRICAL STUDIES, EMPLOYMENT, ENERGY CONSUMPTION, EXCHANGE RATE, EXPENDITURES, EXPORT, EXPORTS, FIXED INPUTS, FUELS, INCOME, INFANT INDUSTRY ARGUMENT, INNOVATION, INTERMEDIATE INPUTS, INVENTORY, LABOR MARKETS, LABOR PRODUCTIVITY, METROPOLITAN AREAS, NEW ENTRANTS, PRICE INDEXES, PRODUCER PRICE INDEXES, PRODUCTION COSTS, PRODUCTION FUNCTION, PRODUCTION FUNCTIONS, PRODUCTIVITY, PRODUCTIVITY GROWTH, PRODUCTIVITY INCREASES, QUALITY STANDARDS, RANDOM WALK, SUNK COSTS, TECHNOLOGICAL CHANGE, TIME SERIES, TOTAL FACTOR PRODUCTIVITY, VARIABLE INPUTS, WAGES,
Online Access:http://documents.worldbank.org/curated/en/2005/03/5686814/learning-by-doing-learning-by-exporting-productivity-evidence-colombia
https://hdl.handle.net/10986/8975
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