Learning and the time interdependence of Costa Rican exports

Abstract

Exports may enhance learning through production-induced learning by doing, learning to export by doing, and flows of information from customers. We provide evidence on the learning effects of export destination for Costa Rica for 1955 through 1980. We examine Granger-causality results and export trends to determine relationships between exports to the Central American Common Market (CACM), the rest of the South, and the North. Increasing exports to the CACM appear to promote learning in machinery, leather, and intermediate manufactures. We also find that the CACM redirects some exports away from Northern markets, probably with damaging consequences.