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Self-selection, export premium and learning-by-exporting: evidence from matched Chinese firms

journal contribution
posted on 2023-06-08, 12:35 authored by Yong Yang, Sushanta Mallick
This study empirically focuses on examining the hypotheses of export premium (exporters are more productive than non-exporters), selection-into-exporting (more productive firms are ones that tend to become exporters) and learning-by-exporting (new export market entrants have higher productivity growth than non-exporters in the post-entry period). The propensity score matching method is used to adjust for observable differences of firm characteristics between exporters and non-exporters, allowing an adequate ‘like-for-like’ comparison. We also use the difference-in-difference matching estimator to capture the magnitude of different productivity growth between matched new export market entrants and non-exporters in the post-entry period up to two years. Drawing on 2,340 Chinese firms in the period 2000–02, we find evidence for export premium and self-selection, and once the firm has entered the export market there is additional productivity growth from the learning effect, in particular in the second year after entry.

History

Publication status

  • Published

Journal

World Economy

ISSN

0378-5920

Publisher

Blackwell Publishing

Issue

10

Volume

33

Page range

1218-1240

Department affiliated with

  • Business and Management Publications

Full text available

  • No

Peer reviewed?

  • Yes

Legacy Posted Date

2012-10-31

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