Learning to Export and Learning by Exporting: The Case of East Java Manufacturing Industry
Abstract
The manufacturing industry contribution and its proportion to the exports in recent years has become dominant in supporting the East Java Province economy. Previous literature showed the impact of export participation in increasing a firm’s productivity. Meanwhile, little literature explains how the manufacturing industry learns about the benefits of exports so that it leads to an increase in a firm’s productivity. Using a large and medium industrial panel dataset from 2008 to 2015 in East Java Province, this study found that export participation in the manufacturing industry significantly increases a firm’s productivity. This increased productivity is due to the selectivity of productivity because manufacturing firms experience learning to export. In addition, this study also found that the manufacturing industry in East Java experienced learning by exporting even with a short duration since entering the export market. By knowing the learning scheme of export participation in the manufacturing industry in East Java, policy recommendations can be established, such as export promotion strategies, export market expansion, and decreased export costs so that the manufacturing industry can increase productivity.
References
Ajija, S. R., Zakia, A. F., & Purwono, R. (2021). The impact of opening the export promotion agencies on Indonesia’s non-oil and gas exports. Heliyon, 7(8), 1-10. https://doi.org/10.1016/j.heliyon.2021.e07756
Badan Pusat Statistik (BPS). (2021c). [Seri 2010] Produk Domestik Regional Bruto (Milyar Rupiah), 2019-2021. https://www.bps.go.id/indicator/52/286/1/-seri-2010-produk-domestik-regional-bruto-.html.
Badan Pusat Statistik (BPS). (2021a). Ekonomi Jawa Timur Triwulan IV-2021 meningkat sebesar 4,59 persen (yoy). https://jatim.bps.go.id/pressrelease/2022/02/07/1253/ekonomi-jawa-timur-triwulan-iv-2021-meningkat-sebesar-4-59-persen--yoy-.html.
Badan Pusat Statistik (BPS). (2021b). Ekspor Desember 2021 mencapai US$22,38 miliar dan Impor Desember 2021 senilai US$21,36 miliar. https://jatim.bps.go.id/pressrelease/2022/02/07/1253/ekonomi-jawa-timur-triwulan-iv-2021-meningkat-sebesar-4-59-persen--yoy-.html.
Badan Pusat Statistik (BPS). (2022). Produk Domestik Regional Bruto Menurut Lapangan Usaha dan Pengeluaran. https://jatim.bps.go.id/subject/52/produk-domestik-regional-bruto.html#subjekViewTab3.
Blalock, G., & Gertler, P. (2003, August). Learning from Exporting: Evidence from Indonesia. In Academy of Management Proceedings (Vol. 2003, No. 1, pp. I1-I6). Briarcliff Manor, NY 10510: Academy of Management.
Busse, M., & Hefeker, C. (2007). Political risk, institutions and foreign direct investment. European journal of political economy, 23(2), 397-415. https://doi.org/10.1016/j.ejpoleco.2006.02.003
Clerides, S. K., Lach, S., & Tybout, J. R. (1998). Is learning by exporting important? Micro-dynamic evidence from Colombia, Mexico, and Morocco. The quarterly journal of economics, 113(3), 903-947. https://www.jstor.org/stable/2586877
Cobbold, T. (2003). A comparison of gross output and value-added methods of productivity estimation. Productivity Commission Research Memorandum, Canberra. https://www.pc.gov.au/research/supporting/comparison-gross-output-value-added-methods/cgovam.pdf
Dinas Perindustrian dan Perdagangan Provinsi Jatim. (2021). Laporan Kinerja Tahun 2015 - 2020. https://disperindag.jatimprov.go.id/sakip/detail-sakip?no=5.
Esaku, S. (2020). Does firm size affect learning-by-exporting? Empirical evidence from Sub-Saharan Africa. Cogent Economics & Finance, 8(1), 1754150. https://doi.org/10.1080/23322039.2020.1754150
Fernandes, A. M., & Isgut, A. E. (2005). Learning-By-Doing, Learning-By-Exporting, And Productivity : Evidence From Colombia. In Policy Research Working Papers. The World Bank. https://doi.org/doi:10.1596/1813-9450-3544
Gkypali, A., Love, J. H., & Roper, S. (2021). Export status and SME productivity: Learning-to-export versus learning-by-exporting. Journal of Business Research, 128, 486-498. https://doi.org/10.1016/j.jbusres.2021.02.026
Habuddin, H., & Firmansyah, F. (2004). Dampak Kinerja Ekspor Industri Manufaktur Terhadap Perekonomian Indonesia. Jurnal Dinamika Ekonomi & Bisnis, 1(2), 83-102. https://doi.org/10.34001/jdeb.v1i2.29
Haidar, J. I. (2012). Trade and productivity: Self-selection or learning-by-exporting in India. Economic Modelling, 29(5), 1766-1773. https://doi.org/10.1016/j.econmod.2012.05.005
Bernard, A. B., & Jensen, J. B. (1999). Exceptional exporter performance: cause, effect, or both?. Journal of international economics, 47(1), 1-25. https://doi.org/10.1016/S0022-1996(98)00027-0
Kominfo Jatim. (2021). Strategi Jawa Timur, Genjot Ekspor Dalam Fluktuasi Perdagangan Dunia. https://kominfo.jatimprov.go.id/read/umum/-strategi-jawa-timur-genjot-ekspor-dalam-fluktuasi-perdagangan-dunia
Leng, P. (2007). Evaluasi Pilot Project Electronic Data Interchange (EDI) di Bidang Kepabeanan (Studi Kasus pada Kantor Pelayanan Bea dan Cukai (KPBC) Tanjung Perak Surabaya). Jurnal Manajemen dan Kewirausahaan, 9(1), 82-88. https://doi.org/10.9744/jmk.9.1.pp.%2082-88
Loecker, J. D. (2013). Detecting learning by exporting. American Economic Journal: Microeconomics, 5(3), 1-21. https://www.jstor.org/stable/43189629
Love, J. H., & Ganotakis, P. (2013). Learning by exporting: Lessons from high-technology SMEs. International business review, 22(1), 1-17. https://doi.org/10.1016/j.ibusrev.2012.01.006
Melitz, M. J. (2003). The impact of trade on intra‐industry reallocations and aggregate industry productivity. Econometrica, 71(6), 1695-1725. https://doi.org/10. 1111/1468-0262.00467
Millia, H., Syarif, M., Adam, P., Rahim, M., Gamsir, G., & Rostin, R. (2021). The Effect of Export and Import on Economic Growth in Indonesia. International Journal of Economics and Financial Issues, 11(6), 17-23. https://econjournals.com/index.php/ijefi/article/view/11870
Petrin, A., Poi, B. P., & Levinsohn, J. (2004). Production function estimation in Stata using inputs to control for unobservables. The Stata Journal, 4(2), 113-123. https://journals.sagepub.com/doi/pdf/10.1177/1536867X0400400202
Ramadhani, T. A., Rachman, M. A., & Sugiyanto, F. X. (2018). The Effect of Investment and Export on Manufacturing Industry in Indonesia. KnE Social Sciences, 1125-1140. https://doi.org/10.18502/kss.v3i10.3198
Roberts, M. J., & Tybout, J. R. (1997). The Decision to Export in Colombia: An Empirical Model of Entry with Sunk Costs. The American Economic Review, 87(4), 545–564. http://www.jstor.org/stable/2951363
Sabri, M., Nachrowi, N. D., Soetjipto, W., & Panennungi, M. A. (2018). Industrial estate and export decision of manufacturing firms in Indonesia. Malaysian Journal of Economic Studies, 55(2), 189-207. https://search.informit.org/doi/10.3316/informit.014688486168048
Siba, E., & Gebreeyesus, M. (2017). Learning to export and learning from exporting: The case of Ethiopian manufacturing. Journal of African Economies, 26(1), 1–23. https://doi.org/10.1093/jae/ejw022
Streeten, P. (1982). A cool look at ‘outward‐looking’strategies for development. World Economy, 5(2), 159-170. https://doi.org/10.1111/j.1467-9701.1982.tb00064.x
Sunaryo, S. (2016). Pengaruh Keberadaan Institusi Perwakilan Perdagangan di Luar Negeri terhadap Kinerja Ekspor Nonmigas Indonesia. Jurnal Kebijakan Ekonomi, 14(1), 1-14. https://scholarhub.ui.ac.id/jke/vol14/iss1/4/
World Bank. (1998). World Development Report: Knowledge for Development, World Development Report; 21. New York: Oxford University Press.
Wu, R., & Chiou, J. R. (2021). Retesting the Learning-by-Exporting Theory: An Investigation of Chinese Manufacturers’ Productivity Under Globalization. Atlantic Economic Journal, 49, 71-85. https://doi.org/10.1007/s11293-021-09696-4
Copyright (c) 2023 Rizqi Qurniawan
This work is licensed under a Creative Commons Attribution 4.0 International License.
