Exporting and performance: evidence from Chilean plants

Abstract.  Recent empirical evidence documents the superior characteristics of exporters relative to non‐exporters. Three explanations for this phenomenon have been proposed: self‐selection; learning‐by‐exporting; and conscious self‐selection. We test these three hypotheses using plant‐level data from Chile. We find that plants that enter international markets show superior initial performance compared with non‐exporters, consistent with self‐selection; we observe increases in productivity after plants begin to export, which is consistent with learning‐by‐exporting. We also find strong evidence supporting the idea that self‐selection is a conscious process by which plants increase productivity with the purpose of becoming exporters. JEL classification: F14; O54; D21