Learning by exporting: The case of Mozambican manufacturing

Abstract

In this article, we analyse the learning-by-exporting (LBE) hypothesis in the Mozambican context. Due to the presence of the 'Born-Global' phenomenon among exporters, we address the endogeneity introduced by self-selection, combining a generalised Blinder-Oaxaca approach with results from traditional matching techniques. Our results show that very few manufacturing firms export, and that export participation is highly persistent. There is also evidence supporting the LBE hypothesis and the results suggest a significant export premium of between 17 and 21%, controlling for differences in observable characteristics between exporters and non-exporters. Finally, qualitative information on non-exporters seeking new markets suggests that 'lack of knowledge of potential markets' is the most severe constraint to international market entry. We conclude that the Mozambican Export Promotion Institute (IPEX) could play an important role in overcoming this information deficit for potential Mozambican exporters.