The Dynamics of Exports and Productivity at the Plant Level: A Panel Data Error Correction Model (Ecm) Approach
PANEL DATA ECONOMETRICS: THEORETICAL CONTRIBUTIONS AND EMPIRICAL APPLICATIONS, B. Baltagi, ed., Elsevier Press: Amsterdam, 2006
Posted: 25 Feb 2008
This article examines the short-run and long-run dynamics of the export-productivity relationship for Turkish manufacturing industries. We use an error correction model (ECM) estimated using a system Generalized Method of Moments (GMM) estimator to achieve this objective. Our results suggest that permanent productivity shocks generate larger long-run export level responses, as compared to long-run productivity responses from permanent export shocks. This result suggests that industrial policy should be geared toward permanent improvements in plant-productivity in order to have sustainable long-run export and economic growth.
Keywords: Europe, Exporting, Long-run dynamics, Productivity, Short-run dynamics, Turkey
JEL Classification: F10, F14, D21, L60
Suggested Citation: Suggested Citation