Exporting and Performance of Plants: Evidence from Korean Manufacturing / Chin Hee Hahn.

Format:

Book

Author/Creator:

Hahn, Chin Hee.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w10208.

NBER working paper series no. w10208

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Exporting and Performance of Plants

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2004.

Summary:

This study examines the relationship between exporting and various performance measures including total factor productivity, using the annual plant-level panel data on Korean manufacturing sector during the period of 1990 to 1998. The two key questions examined are whether exporting improves productivity (learning) and/or whether more productive plants export (self-selection). This study provides evidence supporting both self-selection and learning-by-exporting effects, with both effects being more pronounced at around the time of entry into and exit from the export market. Thus, positive and robust cross-sectional correlation between exporting and total factor productivity is accounted for by both selection and learning effects. These results are in contrast with Aw, Chung, and Roberts (2000) who do not find any strong evidence of self-selection or learning in Korea. Similar effects are observed when shipments or employment is considered as a performance measure. Overall, this study suggests that the benefits from exporting have been realized not only through resource reallocation channel but also TFP channel in Korea.

Notes:

Print version record

January 2004.