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Working Paper Series - Self Selection versus Learning-by-Exporting Four Arab Economies



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Self Selection versus Learning-by-Exporting Four Arab Economies


Volume : 0

No : 0

ISSN : WPS0804

Publisher : Arab Planning Institute - Kuwait

Author (s) : Weshah Razzak 

Published Date : 1/1/2008


Contents :
Trade and openness arePareto optimal, which is the main argument for globalization. Empirically thishas been a difficult question to answer. In the past 15 years or so empiricalanalysis focused on micro-level plant-level, data instead of aggregate timeseries. There have been two competing hypotheses: “self selection” and“learning-by-exporting”. In the former, causality runs from productivity toexporting; the opposite in the latter. Clearly there are serious policyimplications. We test those hypotheses for four Arab countries (Morocco, Egypt, Oman and Qatar) using avariety of methods. There is evidence for both self-select andlearning-by-exporting in Morocco.Exporting industries’ productivity levels dominate those of non-exportingindustries in Moroccoand Egypt.But there is no evidence in favor of exporting industries in the oil-producingcountries, Omanand Qatar. 

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