Learning-by-Exporting Across Export Destinations: Evidence from Lithuanian Manufacturing

Summary:

This paper investigates micro-level effects of export market entry on firm-level productivity. In particular, we study the effects of single and multiple export market entry, and additionally differentiate between the effects of export market entry by destination country. To isolate the impact of participation in foreign markets we employ matching techniques. Using micro-level trade and balance sheet data for firms in Lithuania, we show that single export market entry is linked with larger post-entry productivity growth for new export market entrants, relative to similar non-exporting firms. Moreover, we find support for more learning-by-exporting when looking at firms exporting to more sophisticated markets with presumably higher productivity standards.

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