Does Firm Size Affect Self-Selection and Learning-by-Exporting?

32 Pages Posted: 23 Mar 2010

See all articles by J. A. Máñez

J. A. Máñez

University of Valencia - Faculty of Economics

M. E. Rochina

University of Valencia - Department of Economic Analysis; University College London

J. A. Sanchis

University of Valencia - Department of Applied Economics II

Abstract

The trade literature has long discussed the existence of some benefits attributed to exporting, among others, the improvement of firm productivity. This paper examines whether firm size plays a role in this supposedly favourable relationship between exporting and total factor productivity (TFP). To examine this, we investigate, separately for large and small firms, whether firms starting to export perform better ex ante (self-selection) than non-exporting firms and, conditional on this fact, if they are also more productive ex post (learning-by-exporting). With this purpose, we use both stochastic dominance and matching techniques. The dataset is a representative sample of Spanish manufacturing firms drawn from the Encuesta sobre Estrategias Empresariales for 1990–2002. Our results shed light on the importance of considering differences in firm size when analysing both self-selection into exporting and post-entry productivity changes. They confirm the existence of a binding process of self-selection into exporting among small firms, but not among large firms. Post-entry productivity growth, although with different time patterns, is significant both for small and large firms.

Suggested Citation

Máñez-Castillejo, Juan A. and Rochina-Barrachina, María Engracia and Sanchis-Llopis, Juan Alberto, Does Firm Size Affect Self-Selection and Learning-by-Exporting?. World Economy, Vol. 33, Issue 3, pp. 315-346, March 2010. Available at SSRN: https://ssrn.com/abstract=1576827 or http://dx.doi.org/10.1111/j.1467-9701.2010.01258.x

Juan A. Máñez-Castillejo (Contact Author)

University of Valencia - Faculty of Economics ( email )

Valencia, E-46022
Spain

María Engracia Rochina-Barrachina

University of Valencia - Department of Economic Analysis ( email )

Campus de los Naranjos
46022 Valencia
Spain

University College London

Gower Street
London
United Kingdom

Juan Alberto Sanchis-Llopis

University of Valencia - Department of Applied Economics II ( email )

Edifici Departamental Oriental
Avda. dels Tarongers, S/N
46022 Valencia
Spain

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