Learning-by-exporting and Plant Characteristics: Evidence from Korean Plant-level Data

Abstract

This paper re-examines learning-by-exporting hypothesis employing two alternative measures of plant-level total factor productivity (TFP), utilizing propensity score matching technique. This paper also tries to identify conditions under which the learning-by-exporting may or may not take place, utilizing information on various plant or industry characteristics. We confirm large and robust learning-by-export effect for Korean manufacturing. We also find evidence that the degree of learning-by-exporting effects depends on various plant characteristics. Learning-by-exporting effects tend to be more pronounced for plants with high export propensity and for small plants. In addition, it is found that immediate productivity gain after exporting is larger for plants with high skill intensity, but that longer term gain seems larger for plants with low skill intensity.