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Learning-by-exporting in Korean manufacturing : A plant-level analysis

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  • Learning-by-exporting in Korean manufacturing
  • Han, Chin Hee; Park, Chang-Gyun
  • Economic Research Institute for ASEAN and East Asia


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Title Learning-by-exporting in Korean manufacturing
Similar Titles
Sub Title

A plant-level analysis

Material Type Reports
Author(English)

Han, Chin Hee; Park, Chang-Gyun

Publisher

Jakarta:Economic Research Institute for ASEAN and East Asia

Date 2009-03
Series Title; No ERIA Research Project Report / 2008-1
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Economy < Trade
Industry and Technology < Manufacturing
Holding ERIA

Abstract

The paper analyzes whether firms that start exporting become more productive utilizing recently developed sample matching procedures to control the problems from self-selection into the export market. We use plant level panel data on Korean manufacturing sector from 1990 to 1998. We find clear and robust empirical evidence in favor of the learning-by-exporting effect; total factor productivity differentials between exporters and their domestic counterparts arises and widens during several years after export market entry. We also find that the effect is more pronounced for firms that have higher skill-intensity, higher share of exports in production, and are small in size. Overall, the evidence suggests that exporting is one important channel through which domestic firms acquire accesses to advanced knowledge and better technology. Also, the stronger learning-by-doing effect for firms with higher skill-intensity seems to support the view that “absorptive capacity” matters to receive knowledge spillovers from exporting activity.