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Learning-by-doing, learning-by-exporting, and productivity : evidence from Colombia
 
Author:Fernandes, Ana M.; Isgut, Alberto E.; Collection Title:Policy, Research working paper ; no. WPS 3544
Country:Colombia; Date Stored:2005/03/24
Document Date:2005/03/01Document Type:Policy Research Working Paper
Language:EnglishRegion:Latin America & Caribbean
Report Number:WPS3544SubTopics:Environmental Economics & Policies; Scientific Research & Science Parks; Economic Theory & Research; Banks & Banking Reform; Educational Sciences
Volume No:1 of 1  

Summary: The empirical evidence on whether participation in export markets increases plant-level productivity has been inconclusive so far. The authors explain this inconclusiveness by drawing on Arrow's (1962) characterization of learning-by-doing, which suggests focusing on young plants and using measures of export experience rather than export participation. They find strong evidence of learning-by-exporting for young Colombian manufacturing plants between 1981 and 1991: total factor productivity increases 4-5 percent for each additional year a plant has exported, after controlling for the effect of current exports on total factor productivity. Learning-by-exporting is more important for young than for old plants and in industries that deliver a larger percentage of their exports to high-income countries.

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