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Is Exporting a Source of Productivity Spillovers?

Review of World Economics volume 144, pages 723–749 (2008)Cite this article

Abstract

This paper investigates whether exporting generates positive productivity spillover effects on other plants in the same industry and on plants in vertically related industries. Using data for Chilean manufacturing plants from 1990 to 1999, we find strong evidence that domestic as well as foreign-owned exporting plants improve productivity of local suppliers. We also find some evidence of horizontal spillovers from exporting but these are mainly generated by plants with foreign ownership. These results suggest that positive productivity spillovers are not only generated by the presence of foreign-owned exporting plants but also by exporting activity of domestic firms. The results are robust to controls for agglomeration of economic activity, the importance of non-exporting foreign-owned plants, and plant unobserved heterogeneity.

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Author information

Authors and Affiliations

  1. Central Bank of Chile, Santiago, Chile

    Roberto Alvarez

  2. INTELIS, University of Chile, Santiago, Chile

    Roberto Alvarez

  3. Department of Economics, Indiana University, Wylie Hall Room 105, 47405, Bloomington, IN, U.S.A.

    Ricardo A. López

Authors
  1. Roberto Alvarez
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  2. Ricardo A. López
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Correspondence to Ricardo A. López.

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JEL no.

F10, F23, O3, O54

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Cite this article

Alvarez, R., López, R. Is Exporting a Source of Productivity Spillovers?. Rev World Econ 144, 723–749 (2008). https://doi.org/10.1007/s10290-008-0167-7

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  • DOI: https://doi.org/10.1007/s10290-008-0167-7

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