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arXiv · 2407.14016

Factor-Biased Efficiency Gains from Exporting: Evidence from Colombia

Joonkyo Hong·Davide Luparello
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Abstract

New exporters adopt new technologies, which may reorganize production rather than uniformly increase output, so efficiency gains can vary across inputs. We examine such gains across worker types in Colombian manufacturing, 1981-1991. Developing and applying a model of production and export entry, we find export entry raises the efficiency of unskilled labor by 9.4% annually. We detect no such change for skilled-labor and neutral efficiency. These factor-biased effects imply a 2% annualized rise in total factor productivity. We estimate that the two worker types are complements, so exporters produce more with relatively less unskilled labor, raising skill intensity.

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Joonkyo Hong, Davide Luparello. 2024-07-19. Factor-Biased Efficiency Gains from Exporting: Evidence from Colombia. https://arxiv.org/abs/2407.14016

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