Retesting the Learning-by-Exporting Theory: An Investigation of Chinese Manufacturers’ Productivity Under Globalization

This paper examines the learning-by-exporting effect in Chinese manufacturing firms from 2005 to 2007. The traditional view is that exporting can lead increased productivity by facilitating access global market and, thus, information and cutting-edge technologies. process has been explained theory, which supported mixed empirical evidence. A semiparametric estimation method was used measure firm-level examine contingent impact of exports on productivity. On one hand, exhibited significantly higher faster growth than non-exporting firms. other dependent upon firms’ innovation behavior. Therefore, a firm’s capabilities. Only sufficiently innovative could actually experience through innovation. For non-innovative firms, even result decreased successfully reconciles findings existing literature explains why both positive negative evidence simultaneously reasonably exist under theory.