The Export-Productivity Link in Brazilian Manufacturing Firms

This paper explores the link between exports and total factor productivity in Brazilian manufacturing firms over the period 2000–08. The Brazilian experience is instructive, as it is a case of an economy that expanded aggregate exports significantl...

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Main Authors: Cirera, X., Lederman, D., Máñez, J.A., Rochina, M.E., Sanchis, J.A.
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2015
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2015/07/24775845/export-productivity-link-brazilian-manufacturing-firms
http://hdl.handle.net/10986/22445
id okr-10986-22445
recordtype oai_dc
spelling okr-10986-224452021-04-23T14:04:08Z The Export-Productivity Link in Brazilian Manufacturing Firms Cirera, X. Lederman, D. Máñez, J.A. Rochina, M.E. Sanchis, J.A. INFERENCE EXTRACTIVE INDUSTRIES EXPORT MARKETS DATA PROCESSING INDUSTRIAL AUTOMATION EQUIPMENT ECONOMIC GROWTH ACCOUNTING PRODUCTION GLOBAL MARKETS MATERIALS INDUSTRY INFORMATION EXPORTS EFFECTS DISTRIBUTION VARIABLES INFORMATION ABOUT PROCESS CONDITIONS PRICE INPUTS LEADING TRENDS OPEN ACCESS KNOWLEDGE CAPACITY UTILIZATION LINK DATA FOREIGN TRADE TOTAL FACTOR PRODUCTIVITY TELECOMMUNICATIONS CUSTOMS PRODUCTS ECONOMETRICS PRODUCTIVITY IDEAS ATTRITION CRITERIA INTERNATIONAL COMPARISON MARKETS ORGANIZATIONS AUTOMATION LINKS LEARNING LABOR PROCESS SOFTWARE COMPONENTS EXPORT MARKET EFFICIENCY MANUFACTURING TECHNOLOGY PRODUCTIVITY GROWTH ECONOMIC SURVEYS ECONOMIC PERFORMANCE WAGES DEFLATORS DISCUSSIONS INTERNATIONAL TRADE PRODUCT INNOVATIONS SOFTWARE RESULTS FINANCIAL CRISIS PARTICIPATION VALUE PROCESSING FOREIGN DIRECT INVESTMENT ELECTRICITY PRODUCTION FUNCTIONS WORLD ECONOMY PROCESSES INDUSTRY PRODUCTIVITY LABOUR PRODUCTIVITY ASSUMPTIONS PRODUCTIVITIES ECONOMICS PRODUCTION FUNCTION KNOWLEDGE FLOWS RESULT TRADE FOREIGN COMPETITION UNDERSTANDING THEORY ECONOMIES OF SCALE GROWTH RATE INVESTMENT TOTAL FACTOR PRODUCTIVITY GROWTH PERFORMANCE PRODUCT MARKETS INNOVATION LAW PROFIT FINANCIAL SUPPORT YIELDS COMMUNICATION CUSTOMERS AVERAGE PRODUCTIVITY LABOUR PROFITS INTERNATIONALIZATION OUTCOMES TECHNOLOGIES COMMODITY INDUSTRIES PRICES USES INNOVATIONS DEVELOPMENT POLICY COMPETITION This paper explores the link between exports and total factor productivity in Brazilian manufacturing firms over the period 2000–08. The Brazilian experience is instructive, as it is a case of an economy that expanded aggregate exports significantly, but with stagnant aggregate growth in total factor productivity. The paper first estimates firm-level total factor productivity under alternative assumptions (exogenous and endogenous law of motion for productivity) following a GMM procedure. In turn, the analysis uses stochastic dominance techniques to assess whether the ex ante most productive firms are those that start exporting (self-selection hypothesis). Finally, the paper tests whether exporting boosts firms’ total factor productivity growth (learning-by-exporting hypothesis) using matching techniques to control for the possibility that selection into exports may not be a random process. The results confirm the self-selection hypothesis and show that starting to export yields additional growth in total factor productivity that emerges since the firm’s first year of exporting but lasts only one year. Further, this extra total factor productivity 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. 2015-08-17T18:46:43Z 2015-08-17T18:46:43Z 2015-07 Working Paper http://documents.worldbank.org/curated/en/2015/07/24775845/export-productivity-link-brazilian-manufacturing-firms http://hdl.handle.net/10986/22445 English en_US Policy Research working paper,no. WPS 7365; Policy Research Working Paper;No. 7365 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Brazil
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic INFERENCE
EXTRACTIVE INDUSTRIES
EXPORT MARKETS
DATA PROCESSING
INDUSTRIAL AUTOMATION
EQUIPMENT
ECONOMIC GROWTH
ACCOUNTING
PRODUCTION
GLOBAL MARKETS
MATERIALS
INDUSTRY
INFORMATION
EXPORTS
EFFECTS
DISTRIBUTION
VARIABLES
INFORMATION ABOUT PROCESS
CONDITIONS
PRICE
INPUTS
LEADING
TRENDS
OPEN ACCESS
KNOWLEDGE
CAPACITY UTILIZATION
LINK
DATA
FOREIGN TRADE
TOTAL FACTOR PRODUCTIVITY
TELECOMMUNICATIONS
CUSTOMS
PRODUCTS
ECONOMETRICS
PRODUCTIVITY
IDEAS
ATTRITION
CRITERIA
INTERNATIONAL COMPARISON
MARKETS
ORGANIZATIONS
AUTOMATION
LINKS
LEARNING
LABOR
PROCESS
SOFTWARE COMPONENTS
EXPORT MARKET
EFFICIENCY
MANUFACTURING
TECHNOLOGY
PRODUCTIVITY GROWTH
ECONOMIC SURVEYS
ECONOMIC PERFORMANCE
WAGES
DEFLATORS
DISCUSSIONS
INTERNATIONAL TRADE
PRODUCT INNOVATIONS
SOFTWARE
RESULTS
FINANCIAL CRISIS
PARTICIPATION
VALUE
PROCESSING
FOREIGN DIRECT INVESTMENT
ELECTRICITY
PRODUCTION FUNCTIONS
WORLD ECONOMY
PROCESSES
INDUSTRY PRODUCTIVITY
LABOUR PRODUCTIVITY
ASSUMPTIONS
PRODUCTIVITIES
ECONOMICS
PRODUCTION FUNCTION
KNOWLEDGE FLOWS
RESULT
TRADE
FOREIGN COMPETITION
UNDERSTANDING
THEORY
ECONOMIES OF SCALE
GROWTH RATE
INVESTMENT
TOTAL FACTOR PRODUCTIVITY GROWTH
PERFORMANCE
PRODUCT MARKETS
INNOVATION
LAW
PROFIT
FINANCIAL SUPPORT
YIELDS
COMMUNICATION
CUSTOMERS
AVERAGE PRODUCTIVITY
LABOUR
PROFITS
INTERNATIONALIZATION
OUTCOMES
TECHNOLOGIES
COMMODITY
INDUSTRIES
PRICES
USES
INNOVATIONS
DEVELOPMENT POLICY
COMPETITION
spellingShingle INFERENCE
EXTRACTIVE INDUSTRIES
EXPORT MARKETS
DATA PROCESSING
INDUSTRIAL AUTOMATION
EQUIPMENT
ECONOMIC GROWTH
ACCOUNTING
PRODUCTION
GLOBAL MARKETS
MATERIALS
INDUSTRY
INFORMATION
EXPORTS
EFFECTS
DISTRIBUTION
VARIABLES
INFORMATION ABOUT PROCESS
CONDITIONS
PRICE
INPUTS
LEADING
TRENDS
OPEN ACCESS
KNOWLEDGE
CAPACITY UTILIZATION
LINK
DATA
FOREIGN TRADE
TOTAL FACTOR PRODUCTIVITY
TELECOMMUNICATIONS
CUSTOMS
PRODUCTS
ECONOMETRICS
PRODUCTIVITY
IDEAS
ATTRITION
CRITERIA
INTERNATIONAL COMPARISON
MARKETS
ORGANIZATIONS
AUTOMATION
LINKS
LEARNING
LABOR
PROCESS
SOFTWARE COMPONENTS
EXPORT MARKET
EFFICIENCY
MANUFACTURING
TECHNOLOGY
PRODUCTIVITY GROWTH
ECONOMIC SURVEYS
ECONOMIC PERFORMANCE
WAGES
DEFLATORS
DISCUSSIONS
INTERNATIONAL TRADE
PRODUCT INNOVATIONS
SOFTWARE
RESULTS
FINANCIAL CRISIS
PARTICIPATION
VALUE
PROCESSING
FOREIGN DIRECT INVESTMENT
ELECTRICITY
PRODUCTION FUNCTIONS
WORLD ECONOMY
PROCESSES
INDUSTRY PRODUCTIVITY
LABOUR PRODUCTIVITY
ASSUMPTIONS
PRODUCTIVITIES
ECONOMICS
PRODUCTION FUNCTION
KNOWLEDGE FLOWS
RESULT
TRADE
FOREIGN COMPETITION
UNDERSTANDING
THEORY
ECONOMIES OF SCALE
GROWTH RATE
INVESTMENT
TOTAL FACTOR PRODUCTIVITY GROWTH
PERFORMANCE
PRODUCT MARKETS
INNOVATION
LAW
PROFIT
FINANCIAL SUPPORT
YIELDS
COMMUNICATION
CUSTOMERS
AVERAGE PRODUCTIVITY
LABOUR
PROFITS
INTERNATIONALIZATION
OUTCOMES
TECHNOLOGIES
COMMODITY
INDUSTRIES
PRICES
USES
INNOVATIONS
DEVELOPMENT POLICY
COMPETITION
Cirera, X.
Lederman, D.
Máñez, J.A.
Rochina, M.E.
Sanchis, J.A.
The Export-Productivity Link in Brazilian Manufacturing Firms
geographic_facet Brazil
relation Policy Research working paper,no. WPS 7365;
description This paper explores the link between exports and total factor productivity in Brazilian manufacturing firms over the period 2000–08. The Brazilian experience is instructive, as it is a case of an economy that expanded aggregate exports significantly, but with stagnant aggregate growth in total factor productivity. The paper first estimates firm-level total factor productivity under alternative assumptions (exogenous and endogenous law of motion for productivity) following a GMM procedure. In turn, the analysis uses stochastic dominance techniques to assess whether the ex ante most productive firms are those that start exporting (self-selection hypothesis). Finally, the paper tests whether exporting boosts firms’ total factor productivity growth (learning-by-exporting hypothesis) using matching techniques to control for the possibility that selection into exports may not be a random process. The results confirm the self-selection hypothesis and show that starting to export yields additional growth in total factor productivity that emerges since the firm’s first year of exporting but lasts only one year. Further, this extra total factor productivity 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.
format Working Paper
author Cirera, X.
Lederman, D.
Máñez, J.A.
Rochina, M.E.
Sanchis, J.A.
author_facet Cirera, X.
Lederman, D.
Máñez, J.A.
Rochina, M.E.
Sanchis, J.A.
author_sort Cirera, X.
title The Export-Productivity Link in Brazilian Manufacturing Firms
title_short The Export-Productivity Link in Brazilian Manufacturing Firms
title_full The Export-Productivity Link in Brazilian Manufacturing Firms
title_fullStr The Export-Productivity Link in Brazilian Manufacturing Firms
title_full_unstemmed The Export-Productivity Link in Brazilian Manufacturing Firms
title_sort export-productivity link in brazilian manufacturing firms
publisher World Bank, Washington, DC
publishDate 2015
url http://documents.worldbank.org/curated/en/2015/07/24775845/export-productivity-link-brazilian-manufacturing-firms
http://hdl.handle.net/10986/22445
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