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

See all articles by Mahmut Yasar

Mahmut Yasar

University of Texas at Arlington - Department of Economics; Emory University - Department of Economics

Charles H. Nelson

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics

Roderick M. Rejesus

North Carolina State University

Abstract

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

Yasar, Mahmut and Nelson, Charles H. and Rejesus, Roderick M., 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, Available at SSRN: https://ssrn.com/abstract=648381

Mahmut Yasar (Contact Author)

University of Texas at Arlington - Department of Economics ( email )

701 S. West Street
Arlington, TX 76019
United States

Emory University - Department of Economics ( email )

Charles H. Nelson

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics ( email )

1301 W. Gregory Drive
Urbana, IL 61801
United States

Roderick M. Rejesus

North Carolina State University ( email )

Hillsborough Street
Raleigh, NC 27695
United States

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