Participation in Export Markets and Productivity of Plants in Los Angeles, 1987-1997

Abstract

This article investigates the relationship between the productivity of plants and participation in export markets in the greater Los Angeles area using unpublished plant-level data from the U.S. Census Bureau’s Longitudinal Research Database. Two key questions are examined: (1) do plants that export learn in foreign markets and become more efficient, or (2) do more efficient plants self-select into export markets? The results support previous claims that more productive plants tend to self-select into export markets. Little support is found for the learning-by-exporting argument. The policy implications of these findings are discussed.

Key Words:

• exports
• plant productivity
• microdata
• Los Angeles