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Growth through export: evidence from Iran’s manufacturing plants

Yousefi, K ; Sharif University of Technology | 2020

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  1. Type of Document: Article
  2. DOI: 10.1108/JES-08-2018-0269
  3. Publisher: Emerald Group Publishing Ltd , 2020
  4. Abstract:
  5. Purpose: Does the long-term growth rate of a firm increase by exporting? If yes, how large is that increase in a developing economy? The paper aims to discuss this issue. Design/methodology/approach: The authors incorporate data from the manufacturing plants in Iran as a developing economy for 2003–2011 to address this question. Using fixed effect panel and propensity score matching method, the authors examine whether exportation can affect a firm’s growth rate to test for the learning to grow hypothesis. Findings: The findings document that: not only the exporters are larger and more productive than non-exporters, but they also grow faster in size and productivity measures as well. Additionally, the authors find that the rise in the growth rate is a short-term phenomenon and it disappears in the second year; meaning that exportation does not have a permanent growth effect. The findings are consistent with a spot effect of learning, compared to a permanent growth engine. Results are robust to different analysis tests. Originality/value: The authors investigate the learning effect of exporting within recently released firm-level data of a developing country. © 2020, Emerald Publishing Limited
  6. Keywords:
  7. Export ; Growth ; International trade ; Plants’ growth ; Productivity ; Propensity score weighting
  8. Source: Journal of Economic Studies ; Volume 47, Issue 1 , 23 January , 2020 , Pages 111-131
  9. URL: https://www.emerald.com/insight/content/doi/10.1108/JES-08-2018-0269/full/html