Export‐market participation and productivity performance in Canadian manufacturing

In this paper, we explore the linkages between export‐market participation and productivity performance in Canadian manufacturing plants. We also examine differences in the relationship between exporting and productivity for foreign‐controlled as opposed to domestic‐controlled plants, and between younger and older plants. Export participation is associated with improved productivity. The effect is much stronger for domestic‐controlled plants than for foreign‐controlled plants and for younger businesses than for older businesses. We interpret this as evidence that there is a learning effect associated with export activity but that the potential for improving productivity with entry to export markets differs across firms. JEL Classification: F1, O4