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Exporting and performance of plants : Evidence from Korean manufacturing

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  • Exporting and performance of plants
  • Hahn, Chin Hee
  • KDI; National Bureau of Economic Research


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Title Exporting and performance of plants
Similar Titles
Sub Title

Evidence from Korean manufacturing

Material Type Reports
Author(English)

Hahn, Chin Hee

Publisher

[Seoul]; [Massachusetts]:KDI; National Bureau of Economic Research

Date 2004-01
Series Title; No Working Paper / 10208
Pages 42
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Economy < Trade
Industry and Technology < Manufacturing
Holding KDI

Abstract

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 sutdy provides evidence supporting both self-selection and learning-by-exporiting 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 Robers (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.