Exports, Imports and Productivity: Results from Indonesian Establishment Data

Using detailed micro data from the Indonesian manufacturing sector, we examine whether participation in international trade affects establishments' productivity. Establishments participating in exports or imports have relatively high levels of productivity. Furthermore, the results suggest that establishments engaged in exports have shown comparable high productivity growth. The larger the share of an establishment's output that is exported the higher its productivity growth. The results concerning the effect of imports on productivity growth are mixed.