Journal of African Economies Advance Access originally published online on June 12, 2007
Journal of African Economies 2008 17(2):305-355; doi:10.1093/jae/ejm008
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Learning to Export: Evidence from Moroccan Manufacturing
a Department of Economics, University of Oxford, Manor Road, Oxford OX1 3UQ, UK
b Bank Al-Maghrib, 277, Avenue Mohamed V, Boite Postale 455, Rabat, Morocco
c DECRG, The World Bank, 1818 H Street NW, Washington, D.C. 20433, USA
* Corresponding author: Marcel Fafchamps, Department of Economics, Oxford University, Manor Road, Oxford OX1 3UQ, UK. Telephone: +44-1865-281446. Fax: +44-1865-281447/271094. E-mail: marcel.fafchamps{at}economics.ox.ac.uk
This paper tests two alternative models of selection into export: lower costs and better market familiarity. Both are potentially subject to learning-by-doing, but differ in the type of experience required. Learning to produce at lower cost – what we call productivity learning – depends on general experience, while learning to design products that appeal to foreign consumers – market learning – depends on export experience. Using panel and cross-section data on Moroccan manufacturers, we uncover evidence of market learning but little is evidence that productivity learning is what enables firms to export. These findings are consistent with the concentration of Moroccan manufacturing exports in consumer items, i.e., the garment, textile, and leather sectors. It is the young firms that export. Most do so immediately after creation. We also find that, among exporters, new products are exported very rapidly after production has begun. The share of exported output nevertheless increases for 2–3 years after a new product is introduced, which is indicative of some learning. Old firms are unlikely to switch to exports, even in response to changes in macro incentives.
JEL Classification: 014, F14
We thank the journal editor and an anonymous referees for their very useful comments. We benefitted from comments from seminar participants at Oxford University, EUDN, the World Bank. We are grateful to the World Bank and to the Moroccan Ministry of Commerce and Industry for making available the data used in this study. The support of the Economic and Social Research Countil (UK) is gratefully acknowledged. The work is part of the programme of the ESRC Global Poverty Research Group.