Exporting firms boost productivity for others, revolutionizing knowledge diffusion.
Exporting firms in Argentina can help other firms improve productivity through knowledge spillovers. Learning from exporters, regardless of ownership, benefits upstream producers. Foreign-owned firms that don't export don't create spillovers. This suggests that promoting exports can be more effective for technology diffusion than foreign direct investment. Removing export barriers may be a cheaper way to boost knowledge transfer than removing barriers to foreign investment.