Abstract
Exporting has always been thought of as one tool to improve productivity and, consequently, to spur economic growth in low- to middle-income economies. However, empirical evidence of this so-called 'learning-by-exporting' effect has been limited. This article determines whether learning-by-exporting is evident in two Turkish manufacturing sectors - the textile and apparel (T&A) and the motor vehicle and parts (MV&P) industries. A semi-parametric estimator that controls for problems associated with simultaneity and unobserved plant heterogeneity is used to test the learning-by-exporting hypothesis. After controlling for these issues, our results suggest statistically stronger learning-by-exporting effects in the T&A than in the MV&P industry. The highly concentrated and capital-intensive nature of the MV&P industry is the main reason for the lower learning-by-exporting effect in this sector. From a policy perspective, this implies that targeting export-enhancing policies to industries with significant learning-by-exporting effects may lead to more productivity gains and would better stimulate an export-led growth.
Original language | English (US) |
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Pages (from-to) | 293-305 |
Number of pages | 13 |
Journal | International Review of Applied Economics |
Volume | 21 |
Issue number | 2 |
DOIs | |
State | Published - Apr 2007 |
Keywords
- Heterogeneity
- Learning-by-exporting
- Productivity
- Trade liberalization
ASJC Scopus subject areas
- Economics and Econometrics