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Productivity and turnover in the export market : Micro evidence from taiwan and South Korea

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  • Productivity and turnover in the export market
  • Aw, Bee Yan; Chung, Sukkyun; Roberts, Mark J.
  • The Pennsylvania State University


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Title Productivity and turnover in the export market
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Sub Title

Micro evidence from taiwan and South Korea

Material Type Articles
Author(English)

Aw, Bee Yan; Chung, Sukkyun; Roberts, Mark J.

Publisher

[University Park]:The Pennsylvania State University

Date 1999-02
Pages 39
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Economy < Trade
Industry and Technology < Manufacturing
Industry and Technology < Science/Technology
Holding The Pennsylvania State University

Abstract

While there is widespread empirical evidence indicating exporting producers have higher productivity than nonexporters, the mechanisms that generate this pattern are less clear. One view is that exporters acquire knowledge of new production methods, inputs, and product designs from their international contacts, and this learning results in higher productivity for exporters relative to their more insulated domestic counterparts. Alternatively, the higher productivity of exporters may simply reflect the self-selection of more efficient producers into a highly competitive export market. In this paper we use micro data collected in the manufacturing censuses in South Korea and Taiwan to study the linkages between a producer’s total factor productivity and choice to participate in the export market. We find differences between the countries in the importance of selection and learning forces. In Taiwan, transitions of plants in and out of the export market reflect systematic variations in productivity as predicted by self-selection models. (The rest omitted)