NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

A Note on Detecting Learning by Exporting

Jan De Loecker

NBER Working Paper No. 16548
Issued in November 2010
NBER Program(s):   ITI   PR

Learning by exporting refers to the mechanism whereby firms improve their performance (productivity) after entering export markets. Although this mechanism is often mentioned in policy documents, a significant share of econometric studies has not found evidence for this hypothesis. This paper shows that the methods used to come to the latter conclusion suffer from a large internal inconsistency: they rely on an exogenous evolving productivity process. I show how recent proxy estimators can accommodate endogenous productivity processes such as learning by exporting. I rely on my framework to discuss the bias introduced by ignoring such a process and how adjusting for it can lead to detect significant productivity gains upon export entry. I estimate my model on standard firm-level data and find substantial additional productivity gains from entering export markets.

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Document Object Identifier (DOI): 10.3386/w16548

Published: \Detecting Learning by Exporting", 2013, American Economic Journal: Microeconomics , August, Vol 5, No 3, pp. 1-21.

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