Trade Liberalization: Export-Market Participation, Productivity Growth and Innovation

Industry Differences in the Effect of Export Market Entry: Learning by Exporting?

“…For example, interacting with other firms that deploy best practice technology and/or management processes results in exposure to new ways of doing things and in turn stimulates productivity improvement. Using survey data for Canadian firms, Baldwin and Gu (2004) find support for these channels. 11 In Table 4 we report results from a regression that compares productivity growth in new exporters with similar non-exporters, again identified using propensity score matching, where the regression in Table 3 generates these scores.…”

Industrial Innovation Collaboration in a Capital Region Context

“…Local market orientation negatively influences the perceived market size, and may hence decrease the firm's incentive to engage in innovation activity [13,75]. It should increase the propensity to collaborate locally, and decrease the propensity to collaborate abroad.…”

Exporting May Not Always Boost Firm Productivity

“…Specifically, the productivity premium increases as the share of output exported increases, but at a decreasing rate. Fourth, there is a growing body of evidence to suggest a further increase in productivity following entry, albeit for specific firms or time periods, see for example Kraay (1999), Castellani (2002), Baldwin and Gu (2004), Blalock and Gertler (2004), Van Biesbroeck (2003) and Girma et al (2004). These report second-order productivity effects, which could be due to learning, as in the Clerides et al (1998) model or scale effects as in Medin (2003).…”