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

Yang, Yong and Mallick, Sushanta (2010) Self-selection, export premium and learning-by-exporting: evidence from matched Chinese firms. World Economy, 33 (10). pp. 1218-1240. ISSN 0378-5920

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Abstract

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.

Item Type: Article
Schools and Departments: School of Business, Management and Economics > Business and Management
Subjects: H Social Sciences
Depositing User: Yong Yang
Date Deposited: 31 Oct 2012 14:42
Last Modified: 31 Oct 2012 14:42
URI: http://sro.sussex.ac.uk/id/eprint/41061
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