Discussion Paper Details

Please find the details for DP10276 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Exporting and Firm Performance: Evidence from a Randomized Trial

Author(s): David Atkin, Amit Khandelwal and Adam Osman

Publication Date: December 2014

Keyword(s): exports, learning-by-exporting, market access, productivity and quality

Programme Area(s): Development Economics and International Trade and Regional Economics

Abstract: We conduct a randomized control trial that generates exogenous variation in the access to foreign markets for rug producers in Egypt. Combined with detailed survey data, we causally identify the impact of exporting on firm performance. Treatment firms report 15-25 percent higher profits and exhibit large improvements in quality alongside reductions in output per hour relative to control firms. These findings do not simply reflect firms being offered higher margins to manufacture high-quality products that take longer to produce. Instead, we find evidence of learning-by-exporting whereby exporting improves technical efficiency. First, treatment firms have higher productivity and quality after accounting for rug specifications. Second, when asked to produce an identical domestic rug using the same inputs, treatment firms receive higher quality assessments despite no difference in production time. Third, treatment firms exhibit learning curves over time. Finally, we document knowledge transfers with quality increasing most along the specific dimensions that the knowledge pertained to.

For full details and related downloads, please visit:

Bibliographic Reference

Atkin, D, Khandelwal, A and Osman, A. 2014. 'Exporting and Firm Performance: Evidence from a Randomized Trial'. London, Centre for Economic Policy Research.