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Exploring Manufacturing Export-Productivity Link in Croatia: Micro Evidence & Unanswered Questions

This study by Gorana Lukinic Cardic examines the relationship between exports and productivity in Croatian manufacturing firms. It delves into the intriguing question of whether firms export due to higher productivity (self-selection) or if exporting improves productivity (learning by exporting), or perhaps both. The study presents an unconventional conclusion with better evidence for learning by exporting. Despite robustness tests, some questions remain unanswered, prompting further exploration and speculations on Croatia's uniqueness and historical context in export decisions. The author's analysis raises queries on factors such as total factor productivity, time periods, and potential reasons for diverging conclusions from previous studies. Ultimately, this research highlights the importance of understanding the complexities of export-productivity dynamics and the need for continued investigation into the specific nuances of the Croatian manufacturing sector.

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Exploring Manufacturing Export-Productivity Link in Croatia: Micro Evidence & Unanswered Questions

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  1. EXPORTS AND PRODUCTIVITY LINK IN MANUFACTURING : MICRO EVIDENCE FROM CROATIA:by Gorana Lukinic Cardic Comments of Oleh Havrylyshyn For YES presentation June 23, 2010, Dubrovnik,

  2. WHAT IS MOST INTERESTING AND USEFUL ? • VERY GOOD USE OF A LARGE MICRO-DATA BASE • IMPORTANT QUESTION ASKED : DO FIRMS EXPORT BECAUSE THEY HAVE HIGHER PRODUCTIVITY ? (self-selection SS) or DO FIRMS IMPROVE PRODUCTIVITY BY EXPORTING ? (learning by exporting : LBE); or BOTH ? • UNCONVENTIONAL CONCLUSION: NOT STRONG EVIDENCE OF SS; BETTER EVIDENCE OF LBE

  3. SOME UNANSWERED QUESTIONS • DESPITE SEVERAL GOOD ROBUSTNESS TESTS ONE STILL WONDERS IF MORE TESTS NEEDED; e.g. AS AUTHOR NOTES IN LAST PARAGRAPH: TFP; LONGER TIME-PERIOD, ETC. • WHY IS CONCLUSION ALMOST OPPOSITE OF EARLIER STUDIES , AS IN Sec. 4 Lit. review? IS THERE A UNIQUENESS TO CROATIA, AND IF SO WHAT IS IT?

  4. ROBUSTNESS • GIVEN CONCLUSION IT IS ESP. IMPORTANT TO BE COMFORTABLE WITH ROBUSTNESS • ONE OF THE MOST OBVIOUS : WHY NOT DO TFP INSTEAD OF LABOR PRODUCTIVITY ? • RESULTS MAY BE PARTICULAR TO THE TIME PERIOD: TRANSITION, NORMALIZING POST-YUG. TRADE RELATIONS – IS THERE PRE-1990 DATA? • OTHER POSSIBILITIES MENTIONED IN LAST PARAGRAPH OF PAPER (WHICH ITSELF SUGGESTS AUTHOR ALSO NOT FULLY COMFORTABLE WITH ROBUSTNESS)

  5. IS CROATIA UNIQUE?HOW? • MUST EXPLAIN RESULT , AT LEAST SPECULATE WHY HR DIFFERENT • IF EXPORT DECISION NOT DUE TO HIGHER PRODUCTIVITY , WHAT IS THE REASON? • COULD IT BE RANDOM? POSSIBLE THEORETICALLY, BUT IMPLAUSIBLE • HISTORICAL INERTIA? FIRMS THAT EXPORTED TO OTHER YUG. BEFORE 1990 RESTART EXPORTS? CLUE ON p.4-exports intensified to neighbors!! (N.B. FSU AFTER 2000 SIMILAR) • CAN AUTHOR GIVE US SOME OTHER POSSIBLE EXPLANATIONS?

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