Exporting and Firm Performance: Evidence from a Randomized Trial

Atkin, David; Khandelwal, Ankur; Osman, Adam

doi:10.3386/w20690

Cited by 34 publications

(46 citation statements)

References 85 publications

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“…It is also unlikely that quality upgrading of exporters is responsible for our results, since higher product quality is associated with higher output prices and production costs (c.f. Kugler and Verhoogen, 2012;Manova and Zhang, 2012;Atkin et al, 2014;Fan, Li, and Yeaple, 2015). This is not compatible with the observed decline in output prices, marginal costs, and the relatively stable input prices in our data.…”

Section: Alternative Interpretations: Input Prices and Product Qualitycontrasting

confidence: 51%

Exporting and Plant-Level Efficiency Gains: It's in the Measure

García-Marín¹,

Voigtländer²

2013

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While there is strong evidence for productivity-driven selection into exporting, the empirical literature has struggled to identify export-related efficiency gains within plants. Previous research typically derived revenue productivity (TFPR), which is downward biased if more efficient producers charge lower prices. Using a census panel of Chilean manufacturing plants, we compute plant-product level marginal cost as an efficiency measure that is not affected by output prices. For export entrant products, we find efficiency gains of 15-25%. Because markups remain relatively stable after export entry, most of these gains are passed on to customers in the form of lower prices, and are thus not reflected by TFPR. These results are confirmed when we use tariffs to predict export entry. We also document very similar results in Colombian and Mexican manufacturing plants. In addition, we find sizeable efficiency gains for tariff-induced export expansions of existing exporters. Only one quarter of these gains are reflected by TFPR, due to a partial rise in markups. Our results thus imply that within-plant gains from trade are substantially larger than previously documented. Evidence suggests that a complementarity between exporting and investment in technology is an important driver behind these gains.

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Section: Alternative Interpretations: Input Prices and Product Qualitycontrasting

confidence: 51%

Exporting and Plant-Level Efficiency Gains: It's in the Measure

García-Marín¹,

Voigtländer²

2013

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“…Atkin, Khandelwal, and Osman (2014) used this to study the impact of exporting on firm performance. They split a large order from a foreign buyer into smaller orders which they offered to a random subset of small rug manufacturers in Egypt.…”

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confidence: 99%

Did Export Promotion Help Firms Weather the Crisis?

2016

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In the global recession of 2009, exports declined precipitously in many countries. We illustrate with firm-level data for Belgium and Peru that the decline was very sudden and almost entirely due to lower export sales by existing exporters. After the recession, exports rebounded almost equally quickly and we evaluate whether export promotion programs were an effective tool aiding this recovery. We show that firms taking advantage of this type of support did better during the crisis, controlling flexibly for systematic differences between supported and control firms. The primary mechanism we identify is that supported firms are generally more likely to survive on the export market and, in particular, are more likely to continue exporting to countries hit by the financial crisis. We would like to thank Carlos Salamanca Malagón and Victoria Valente for excellent research assistance, the National Bank of Belgium, FIT and PROMPERU for access to the Belgian and Peruvian data respectively, and Heather Booth di Giovanni for helpful suggestions. The views and interpretations in this paper are strictly those of the authors and should not be attributed to the Inter-American Development Bank, its executive directors, its member countries, the National Bank of Belgium, PROMPERU, or FIT. Executive SummaryThe academic literature as advanced and tested several explanations for the notable decline in the volume of international trade during the Great Recession of 2008-2009. Shocks to both demand and trade costs have been suggested as important channels. There has, however, been surprisingly little discussion how governments could help firms cope with the fallout from foreign demand or with the increase in trading frictions.In this paper we first document for Belgium and Peru that trade volumes rebounded remarkably quickly. By 2010 exports had regained their pre-crisis levels and by 2011 they were even back on the pre-crisis trend. Using firm-level information for both countries, we investigate whether export promotion programs played a role in this recovery. A growing literature has documented the success of such programs in raising exports in general and they could be a valuable tool to help the private sector recover from a large trade decline as well.Most countries now run active export promotion programs to facilitate domestic firms' entry into the export market and support subsequent export sales. Rather than provide direct subsidies, these programs work mainly as an information depository or a way to share fixed information acquisition costs between exporters. They help firms to learn about foreign demand for their products, establish relationships with importers, identify promising new distribution channels, and overcome administrative or trade frictions such as customs procedures and differences between domestic and foreign regulations or product standards.The evidence suggests export promotion has indeed been an effective tool to help firms survive on the export market. We show that firms active on the export ma...

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“…23 While most studies find no evidence of learning-by-exporting, some find mixed evidence and others find evidence in special cases. Aw, Chung, and Roberts (2000), using a methodology similar to that of Bernard and Jensen (1999) Finally, in recent work, Atkin, Khandelwal, and Osman (2016) provide experimental evidence on learning-by-exporting in a randomized control trial with Eygptian rug manufacturers. Specifically, after randomizing orders from an international rug intermediary across small rug makers, they evaluate in a laboratory setting whether those receiving export access became more skilled at making high-quality rugs.…”

Section: Self-selection Vs Learning-by-exportingmentioning

confidence: 99%

Firms in international trade

Díez¹,

Mora²,

Spearot³

2018

Handbook of International Trade and Transportation

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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. Firms play a critical role in the global economy. In this paper, we survey the behavior of firms in the international economy, both in theory and in the data. We first summarize the key empirical facts that motivate the study of firms in trade. Then, we detail recent theoretical developments on the micro-foundations of firm behavior in an international context, focusing on how firms select into exporting, and how firms respond to international shocks. Finally, we turn to a "real world," empirically focused view of exporting, beginning with the growth dynamics of firms expanding to global markets, and then addressing the critical financing decisions firms make when engaging in international commerce. We conclude with directions for future research. Terms of use: Documents in EconStor may JEL Classifications: F10, F12, F14

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Exporting and Firm Performance: Evidence from a Randomized Trial

Cited by 34 publications

References 85 publications

Exporting and Plant-Level Efficiency Gains: It's in the Measure

Exporting and Plant-Level Efficiency Gains: It's in the Measure

Did Export Promotion Help Firms Weather the Crisis?

Firms in international trade

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