Wulong Gu (Statistics Canada), John Baldwin

Export-market Participation and Productivity Performance in Canadian Manufacturing

In this paper, we explore the linkages between export-market participation and productivity performance in Canadian manufacturing plants. We also examine differences in the relationship between exporting and productivity for foreign-controlled as opposed to domestic-controlled plants, and between younger and older plants. Export participation is associated with improved productivity. The effect is much stronger for domestic-controlled plants than for foreign-controlled plants and for younger businesses than for older businesses. We interpret this as evidence that it is there is a learning effect associated with export activity but that the potential for improving productivity with entry to export markets differs across firms.

Keywords: Exports; Productivity; Multinationals; Self-selection

JEL Codes: F1; O4

Session: 2c   Room 2002   Category: International

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