TY - JOUR AU - Hahn, Chin Hee TI - Exporting and Performance of Plants: Evidence from Korean Manufacturing JF - National Bureau of Economic Research Working Paper Series VL - No. 10208 PY - 2004 Y2 - January 2004 DO - 10.3386/w10208 UR - http://www.nber.org/papers/w10208 L1 - http://www.nber.org/papers/w10208.pdf N1 - Author contact info: Chin Hee Hahn Korea Development Institute POB 113, Cheongnyang Seoul 130-012, KOREA E-Mail: chhahn@kdi.re.kr M1 - published as Chin Hee Hahn. "Exporting and Performance of Plants: Evidence on Korea ," in Takatoshi Ito and Andrew K. Rose, editors, "International Trade in East Asia" University of Chicago Press (2005) AB - This study examines the relationship between exporting and various performance measures including total factor productivity, using the annual plant-level panel data on Korean manufacturing sector during the period of 1990 to 1998. The two key questions examined are whether exporting improves productivity (learning) and/or whether more productive plants export (self-selection). This study provides evidence supporting both self-selection and learning-by-exporting effects, with both effects being more pronounced at around the time of entry into and exit from the export market. Thus, positive and robust cross-sectional correlation between exporting and total factor productivity is accounted for by both selection and learning effects. These results are in contrast with Aw, Chung, and Roberts (2000) who do not find any strong evidence of self-selection or learning in Korea. Similar effects are observed when shipments or employment is considered as a performance measure. Overall, this study suggests that the benefits from exporting have been realized not only through resource reallocation channel but also TFP channel in Korea. ER -