Productivity Before and After Exports: The Case of Korean Food Processing Firms

In this article, we analyze the export decision of Korean manufacturing firms with emphasis on those in the food processing sector. A dynamic discrete choice model based on sunk (entry or exit) costs is specified for export behavior. Data for 1996-2002 on 1022 Korean firms, of which 95 are in the food processing sector, are assembled. A nonparametric measure of firm productivity is derived for use in the export-behavior (probit) model. Results show the significant effects of sunk costs on the export decision of Korean firms. A firm-size effect on export behavior is identified for food processing firms, unlike in the case of their manufacturing counterparts. We also find a firm-size effect on productivity in all manufacturing firms.


Subject(s):
Issue Date:
2006
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/21271
Total Pages:
20
Series Statement:
Selected Paper 155702




 Record created 2017-04-01, last modified 2017-11-20

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