Cebeci, Tolga2014-02-032014-02-032014-01https://hdl.handle.net/10986/16819This paper evaluates the role of export destinations on productivity, employment, and wages of Turkish firms by comparing the performance of firms that export to low-income destinations and high-income destinations with firms that do not export. A combination of propensity score matching and difference-in-differences methods are employed on a rich set of firm observables, including sector, region, employment, total factor productivity (TFP), capital intensity, wages, support from government, ownership, and the research and development intensity of firms. Four sets of findings emerge from the analysis: i) Export entry has a positive causal effect on firm TFP and employment and this effect is strengthened as a firm continues to export. ii) In contrast, export entry has a moderate wage effect that emerges only with a lag. iii) Unlike exporting to high-income destinations, exporting to low-income destinations does not result in significantly higher firm TFP and wages. iv) The employment effect of exporting to low-income destinations is comparable to that of exporting to high-income destinations.en-USCC BY 3.0 IGOAGRICULTUREBALANCE SHEETBENCHMARKSCENTRAL BANKCUSTOMSDEVALUATIONDEVELOPMENT ECONOMICSDEVELOPMENT POLICYDIVERSIFICATIONECONOMIC GROWTHECONOMICS RESEARCHEMPLOYEE BENEFITSEMPLOYMENTEMPLOYMENT GROWTHEXPORTEXPORT GROWTHEXPORT MARKETEXPORT MARKETSEXPORT PERFORMANCEEXPORTSFINANCIAL CRISESFINANCIAL SUPPORTFIRM SIZEFIRMSFOREIGN MARKETSGDPGLOBAL ECONOMYGOVERNMENT POLICIESGROWTH PATHSHUMAN RESOURCESIDINCOMEINCOME GROUPSINDUSTRY PRODUCTIVITYINNOVATIONINTERNATIONAL TRADELABOR PRODUCTIVITYLESS DEVELOPED COUNTRYMANUFACTURINGMANUFACTURING INDUSTRIESMANUFACTURING INDUSTRYMARKET ENTRYMATERIALMOTIVATIONOPEN ACCESSPER CAPITA INCOMEPERFORMANCESPRODUCTION FUNCTIONSPRODUCTIVITYPRODUCTIVITY GROWTHPRODUCTIVITY INCREASESR&DRESULTRESULTSSKILLED WORKERSSMALL FIRMSMALL FIRMSSOFTWARE COMPONENTSSUNK COSTSTECHNOLOGY DIFFUSIONTOTAL FACTOR PRODUCTIVITYTRADE BARRIERSTRADE LIBERALIZATIONTRADE POLICYUSESVALUE ADDEDWAGESWEBWorld Bank10.1596/1813-9450-6743