Is learning by exporting technology specific? Evidence from Chinese firms

Abstract

ABSTRACT Integrating the theory of heterogeneous firm and trade with the neo-Schumpeterian view, this paper examines whether learning-by-exporting processes in Chinese firms are technology specific. Using a combination of propensity score matching and difference-in-differences estimation, we find weak evidence that exports generate higher productivity and growth for Chinese firms. This learning effect is subject to the nature of technology across industries: learning-by-exporting processes favor sectors characterized by high levels of appropriability and technological opportunity, while they are hindered in sectors featuring a wider knowledge base and higher cumulativeness. This technology-specific nature of learning effects leads to discrepant post-export gains in productivity across different sectors as well as economies.