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

Garcia-Marin, A; Voigtländer, N; (2019) Exporting and Plant-Level Efficiency Gains: It’s in the Measure. Journal of Political Economy , 127 (4) pp. 1777-1825. 10.1086/701607. Green open access

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Abstract

While there is strong evidence that more productive plants select into exporting, the literature has struggled to identify export-related efficiency gains within plants. We show that this is due to the common use of revenue-based productivity measures (TFPR): more efficient producers tend to charge lower prices, leading to a downward bias in TFPR. Using census panels of Chilean, Colombian, and Mexican manufacturing plants, we find sizable efficiency gains after export entry based on efficiency measures that are not affected by output prices. Evidence suggests that a complementarity between exporting and investment in technology is an important driver of these gains.

Type: Article
Title: Exporting and Plant-Level Efficiency Gains: It’s in the Measure
Open access status: An open access version is available from UCL Discovery
DOI: 10.1086/701607
Publisher version: https://doi.org/10.1086/701607
Language: English
Additional information: This version is the version of record. For information on re-use, please refer to the publisher’s terms and conditions.
UCL classification: UCL
UCL > Provost and Vice Provost Offices
UCL > Provost and Vice Provost Offices > UCL SLASH
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics
URI: https://discovery.ucl.ac.uk/id/eprint/10086415
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