Learning, Exporting and Firm Productivity:
Evidence from Portuguese Manufacturing and Services Firms
GEMF / Faculdade de Economia, Universidade de Coimbra
Portugal, when compared with the EU-28 average, has a lower degree of openness to foreign trade. This paper provides a detailed analysis of the total factor productivity differences between Portuguese exporters and non-exporters over the period 1996–2004, in manufacturing and service sectors, and their contribution to aggregate productivity growth. It was found that exporters are the dominant source of industry productivity growth. Additionally, the within-firm effect dominates in manufacturing sector, while reallocation effect explains a large proportion of growth in service sector. Exporters in Portugal, like exporters elsewhere, are effectively more productive than non-exporters. However, the capacity of a firm to internalize knowledge from international markets seems to depend on firm’s knowledge. The results have important policy implications.
JEL Classification: F14; D24; O47; O33.
Keywords: Exports; Total factor productivity; Productivity growth; Reallocation; Learning.