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LEARNING BY EXPORTING AND SELF-SELECTION HYPOTHESES: EVIDENCE FROM CROATIA

by | Dec 5, 2019 | DOI 2018

Kladiola Gjini
Lecturer University ‘Aleksandër Xhuvani’ Economics Department, Elbasan Albania; PhD candidate University of Tirana, Albania
Kolë Prenga
University of Tirana Albania, Economics Department
​DOI: https://doi.org/10.31410/EMAN.2018.90


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2nd International Scientific Conference – EMAN 2018 – Economics and Management: How to Cope With Disrupted Times, Ljubljana – Slovenia, March 22, 2018, CONFERENCE PROCEEDINGS published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; Faculty of Management Koper, Slovenia; Doba Business School – Maribor, Slovenia; Integrated Business Faculty – Skopje, Macedonia; Faculty of Management – Zajecar, Serbia, ISBN 978-86-80194-11-0

Abstract​

In this paper we estimate the probability to export by adopting a (random effect panel) Probit model for Croatian firm level data over the 2002-2013 periods. We strongly support the hypothesis that self-selection into export markets occurs for more productive firms. The effects of total factor productivity in export are shown to be in the long run. Furthermore, we find a significant effect for lagged productivity on export participation. Our findigns support the learning by exporting hypothesis, that export participation has a positive strong effect on productivity. Given the importance of the subject, this paper invites further research in firm performance-export relationship for Croatia.

Key words

export, self-selection hypothesis, learning by exporting hypothesis, productivity

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