Exporting and Performance of Plants: Evidence from Korean Manufacturing

Chin Hee Hahn

63 citations0/0 files storedNational Bureau of Economic Research

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Global trade and economics International Business and FDI Economic and Technological Innovation

Abstract

This study examines the relationship between exporting and various performance measures including total factor productivity, using the annual plant-level panel data on Korean manufacturing sector during the period of 1990 to 1998.The two key questions examined are whether exporting improves productivity (learning) and/or whether more productive plants export (self-selection).This study provides evidence supporting both self-selection and learning-by-exporting effects, with both effects being more pronounced at around the time of entry into and exit from the export market.Thus, positive and robust cross-sectional correlation between exporting and total factor productivity is accounted for by both selection and learning effects.These results are in contrast with Aw, Chung, and Roberts (2000) who do not find any strong evidence of self-selection or learning in Korea.Similar effects are observed when shipments or employment is considered as a performance measure.Overall, this study suggests that the benefits from exporting have been realized not only through resource reallocation channel but also TFP channel in Korea.

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References

1999Why do Some Countries Produce So Much More Output Per Worker than Others?1995Economic Reform and the Process of Global Integration 1999Exceptional exporter performance: cause, effect, or both?1995The East Asian Miracle: Economic Growth and Public Policy. A World Bank Policy Research Report. London: Oxford University Press, 1993. xvii, 289 pp.1998Is Learning by Exporting Important? Micro-Dynamic Evidence from Colombia, Mexico, and Morocco 1996Why Do Some Countries Produce so Much More Output Per Worker than Others?2000Productivity and Turnover in the Export Market: Micro-level Evidence from the Republic of Korea and Taiwan (China)1997Exceptional Exporter Performance: Cause, Effect, or Both?

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