Exporting Firms in East Asia Outperform Locally Focused Competitors in Productivity
The study looked at how exporting and foreign ownership affect the productivity of manufacturing firms in East Asia. They found that firms that export and have foreign ownership are more productive, especially in less developed local markets. Firms aiming for export markets make decisions that increase their productivity, such as investing in technology and training. This shows that targeting export markets can lead to higher productivity in manufacturing firms in East Asia.