Abstract

In this paper, we study empirically the relationship between export orientation and firm productivity in Chilean manufacturing industry. Similar to findings for other countries and consistent with recent theoretical models, our results show that exporters are significantly more productive than non-exporters. Moreover, we found evidence of a clear association between firm productivity and entry and exit from international markets: (i) firms start exporting are more productive than non-exporters, and (ii) firms stop exporting are less productive than those remain exporting. In general, our findings are consistent with a self-selection phenomenon rather than learning-by-exporting