Business Intelligence

Learning-by-exporting In Korean Manufacturing: A Plant-level Analysis

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Executive Summary

This paper analyzes whether firms that start exporting become more productive using matched sampling techniques to control for the self-selection into export market. To do so, the authors use plant level panel data on Korean manufacturing sector in the period 1990-2006. The authors find clear and robust learning-by-export effect; the total factor productivity gap between exporters and their domestic counterparts arises and widens during several years after export market entry. They also find that the effect is more pronounced for firms that have higher skill-intensity, higher share of exports in production, and small in size.

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