The Export-Productivity Link in Brazilian Manufacturing Firms

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract This paper explores the link between exports and total factor productivity (TFP) for Brazilian manufacturing firms over the period [2000][2001][2002][2003][2004][2005][2006][2007][2008], both under the assumption of an exogenous or an endogenous law of motion for productivity. The authors first obtain TFP estimates under each alternative assumption following Wooldridge (On estimating firm-level production functions using proxy variables to control for unobservables, 2009) GMM procedure. Second, using stochastic dominance techniques they analyse whether the ex-ante most productive firms are those that start exporting (self-selection hypothesis). Finally, the authors test whether exporting boosts firms TFP growth (learning-by-exporting hypothesis) using matching techniques, to control for the possibility that selection into exports may not be a random process. Their results confirm the self-selection hypothesis and show that starting to export yields firms an extra TFP growth that emerges since the first year exporting but lasts only from this year to the next. Further, this extra TFP growth is much higher under the assumption of an endogenous law of motion for productivity, which reinforces the importance of accounting for firm export status to study the evolution of productivity. Terms of use: Documents in

Jobs and Growth: Brazil's Productivity Agenda

“…The productivity effects of Brazil's previous unilateral trade liberalization have been found to be overwhelmingly positive (see rossi Jr and Ferreira 1999, schor 2004, Muendler 2004and Lisboa, Menezes Filho, and schor 2010. 11 Cirera et al (2015) also find a positive impact on productivity among Brazilian firms via the effects of improved imported inputs (learning by importing) that diffuse with positive spillovers from direct importing to other firms. This past experience thus provides important evidence supporting the role trade opening can play in boosting productivity.…”