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Exports,Imports and Productivity: Results from Indonesian Establishment Data
Affiliation:1. OECD Directorate for Employment, 2 rue André Pascal, 75775 Paris Cedex 16, France;2. Bank of Italy Economic Research Department, via Nazionale 91, 00184 Rome, Italy;3. Bocconi University, fRDB and DONDENA Centre, Via Roentgen 1, 20136 Milan, Italy;1. University of Wyoming, College of Business, 1000 E. University Ave., Laramie, WY 82071, USA;2. Elon University, Love School of Business, 314 E. Haggard Avenue, Elon, NC 27244, USA;1. School of International Trade and Economics, University of International Business and Economics, China;2. Faculty of Business and Economics, The University of Hong Kong, Hong Kong;1. Department of Economics, Mary Burton Building, Heriot-Watt University, Edinburgh EH14 4AS, UK;2. Ecole Normale Supérieure de Cachan, Paris School of Economics, France;3. CEPR, UK;4. CREST, France;5. CEPII, France
Abstract:Using detailed micro data from the Indonesian manufacturing sector we examine whether participation in international trade affects establishments' productivity. Establishments participating in exports or imports have relatively high levels of productivity. Furthermore, the results suggest that establishments engaged only in exports have shown comparable high productivity growth. The larger the share of an establishment's output that is exported, the higher its productivity growth. The results concerning the effect of imports on productivity growth are mixed.
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