Industry Differences in the Effect of Export Market Entry: Learning by Exporting?

U. of Nottingham Working Paper No. 2004/33

25 Pages Posted: 3 Aug 2005

See all articles by Richard Kneller

Richard Kneller

University of Nottingham

David Greenaway

University of Nottingham - School of Economics

Date Written: 2004

Abstract

There is extensive empirical evidence pointing to the exsistence of sunk costs to exporting. Only higher productivity firms can profitably cover these and enter export markets. This is the standard explanation for the regularity with which econometric analyses reports that exporters are more productive than non-exporters. But what happens to their productivity trajectory once they have entered? Theory points to the possibiliity of a further productivity boost, attributable to the effects of learning and comptetion, though as yet there is little empirical support for this. We investigate whether this is because the potential for this boost depends upon how exposed to competition the firm is already. We find that industry differences are important in determining whether learning effects boost productivity after export market entry.

Keywords: Exporting, Productivity, Learning

JEL Classification: F12, F14, L25, L60

Suggested Citation

Kneller, Richard and Greenaway, David, Industry Differences in the Effect of Export Market Entry: Learning by Exporting? (2004). U. of Nottingham Working Paper No. 2004/33. Available at SSRN: https://ssrn.com/abstract=764404 or http://dx.doi.org/10.2139/ssrn.764404

Richard Kneller

University of Nottingham ( email )

University Park
Nottingham, NG8 1BB
United Kingdom

David Greenaway (Contact Author)

University of Nottingham - School of Economics ( email )

University Park
Nottingham, NG7 2RD
United Kingdom
+44 115 951 5469 (Phone)
+44 115 951 4159 (Fax)

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