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

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 meas...

Full description

Bibliographic Details
Main Authors: Fernandes, Ana M., Isgut, Alberto E.
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
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
http://hdl.handle.net/10986/8975
Description
Summary: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.

Similar Items