eng Science and Education Publishing Journal of Finance and Economics 2328-7276 2014-03-06 2 2 50 57 10.12691/jfe-2-2-2 JFE2014222 article Ruohan Wu rwu@alasu.edu 1 College of Business Administration, Alabama State University, Montgomery, AL, US This paper introduces asymmetric demand into an open-economy model. Domestic industries exhibit different export capabilities, and the export market attaches different preferences to them. My model shows how exports influence the market structure and productivity growth. If an industry exports more, the firms within the industry would face a higher domestic-market but lower export-market entry threshold. The industry can exhibit a significant learning-by-exporting effect; that is, its exports can significantly increase productivity growth, only when its innovation expenditure is sufficiently high. http://pubs.sciepub.com/jfe/2/2/2/jfe-2-2-2.pdf asymmetric demand exports productivity growth learning-by-exporting innovation