Exporting Spillovers: Firm-Level Evidence from Argentina
Laurier Business and Economics Department of Economics Working Paper Series No. 2008-02 EC
10 Pages Posted: 18 Apr 2008
We investigate whether exporting firms generate possibilities for productivity enhancement by other firms through spillovers. While spillovers have been analyzed when domestic learn from foreign-owned firms, we consider the possibility of learning from firms that export, irrespective of ownership origin. We find evidence consistent with learning from exporters to upstream producers. Foreign-owned firms that do not export do not generate spillovers. Therefore, our results suggest that export activity, as opposed to foreign direct investment (FDI) per se, is associated with knowledge diffusion to input suppliers. Indeed, the results suggest that FDI subsidies to foster technology spillovers may well be dominated by certain export promotion strategies. In addition, removing barriers to exports can prove less costly than removing barriers to FDI inflows.
Keywords: Exporting, Spillovers, FDI, Supply-Chain Linkages
JEL Classification: O30, F10, N16
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