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Export-Productivity Link in Croatia: Micro-Evidence and Unanswered Questions

This study explores the relationship between exports and productivity in Croatian manufacturing. It delves into the intriguing question of whether firms export because they have higher productivity (self-selection) or if exporting leads to improved productivity (learning by exporting). With unconventional conclusions challenging the existing literature, the study raises crucial unanswered questions and emphasizes the significance of robustness in the analysis. The uniqueness of Croatia in this context is also examined, along with suggestions for further research and possible alternative explanations for the findings. The author speculates on reasons for differing results and considers factors like historical inertia and trade relations, providing valuable insights into the intricate dynamics of export-driven productivity.

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Export-Productivity Link in Croatia: Micro-Evidence and 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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