Article citationsMore >>

Clerides, S., Lach,S., and Tybout,J., “Is Learning by Exporting Important? Micro-dynamic Evidence from Columbia, Mexico and Morocco”, TheQuarterly Journal of Economics, 113(3): 903-947. 1998.

has been cited by the following article:

Article

How Does an Industry Thrive More From Exporting? A Theoretical Analysis of the Learning-by-Exporting Effect with Innovation and Asymmetric Demand

1College of Business Administration, Alabama State University, Montgomery, AL, US


Journal of Finance and Economics. 2014, Vol. 2 No. 2, 50-57
DOI: 10.12691/jfe-2-2-2
Copyright © 2014 Science and Education Publishing

Cite this paper:
Ruohan Wu. How Does an Industry Thrive More From Exporting? A Theoretical Analysis of the Learning-by-Exporting Effect with Innovation and Asymmetric Demand. Journal of Finance and Economics. 2014; 2(2):50-57. doi: 10.12691/jfe-2-2-2.

Correspondence to: Ruohan  Wu, College of Business Administration, Alabama State University, Montgomery, AL, US. Email: rwu@alasu.edu

Abstract

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.

Keywords