Template-Type: ReDIF-Paper 1.0

Author-Name: Biljana Jovanovic
Author-Name-First: Biljana
Author-Name-Last: Jovanovic
Author-Email: PetkovskaB@nbrm.mk
Author-Workplace-Name: National Bank of the Republic of North Macedonia

Title: Export and firms' performance in North Macedonia: self selection or learning by doing?

Abstract: Export is an important contributor to growth with numerous direct and indirect macroeconomic benefits. Moreover, firms engaged in exporting activity tend to have superior characteristics compared to their non-exporting peers. The paper is focused on identifying reasons behind this superiority of exporters by testing two hypothesis – self-selection and learning by doing hypothesis. The analysis is done on a sample of over 1,900 manufacturing firms annually, for the period 2013-2017. In line with previous empirical research, we found evidence in favor of the self-selection hypothesis. This means that more successful and more productive firms become exporters as a result of their performance i.e. they self-select themselves in the international market. In addition, our results suggest that, complementary to the self-selection process, there are some evidence of the validity of learning by doing hypothesis.

Length: 28

Creation-Date: 2020

File-URL: https://www.nbrm.mk/content/Export_and_firms%E2%80%99_performance_in_North_Macedonia_self_selection_or_learning_by_doing_WP1-2020.pdf

File-Format: Application/pdf

File-Function: First version, 2020

Number: 2020-01

Classification-JEL: D24, D22, F14
Keywords: self selection, learning by doing, export, matching
Handle: RePEc:mae:wpaper:2020-01