Learning-by-exporting in the presence of a quota intervention: evidence from Indonesia

Crawford School of Public Policy | Arndt-Corden Department of Economics

Event details

PhD Seminar (Econ)

Date & time

Friday 08 December 2017
9.30am–11.00am

Venue

Seminar Room 1 , Level 1, Stanner Building 37, Lennox Crossing, ANU

Speaker

Deasy Pane, PhD scholar, Crawford School.

Learning-by-exporting refers to the mechanism whereby firms improve their productivity after entering export markets. This study investigates how a quota intervention can affect this mechanism. An example of such an intervention is the Multi-Fibre Arrangement (MFA), a global quota facility for textile and clothing. Using propensity score matching and difference-in-difference methods, I analyse how the MFA affected apparel exporter’s performance in Indonesia. The results suggest that the impact on productivity was positive and significant during the MFA period, but was not significant after it ended. This suggests that the MFA may have benefited firms, but only in the short run. The benefits may have been due to quota rents.

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