Detecting Learning by Exporting

Jan De Loecker

American Economic Journal: Microeconomics, 2013, vol. 5, issue 3, 1-21

Abstract: Learning by exporting refers to the mechanism whereby a firm's performance improves after entering export markets. This mechanism is often mentioned in policy documents, but many econometric studies have not found corroborating evidence. I show that the econometric methods rely on an assumption that productivity evolves exogenously. I show how to accommodate endogenous productivity processes such as learning by exporting. I discuss the bias introduced by ignoring such a process, and show that adjusting for it can lead to di fferent conclusions. Using micro data from Slovenia I find evidence of substantial productivity gains from entering export markets.

JEL-codes: D22 D24 D83 F14 L25 (search for similar items in EconPapers)
Date: 2013
Note: DOI: 10.1257/mic.5.3.1
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Citations: View citations in EconPapers (297)

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