Does Firm Age Affect Learning-by-Exporting? Evidence from Sub-Saharan Africa

Using a unique dataset from three Sub-Saharan African countries, we investigate how learning-by-exporting varies across firm age. Assuming a Cobb-Douglas production technology, we use propensity score matching methods to match exporters (treated) and non-exporters (control) to test for learning-by-exporting effects across firm age. Our findings reveal that new exporters are different from non-exporters. We find high productivity growth rates among younger firms than older firms. However, productivity gains do not come with entry to the market but rather set in after the year of entry. Our findings suggest that the firm’s age is an important component for the learning mechanism to take effect. Learning effects display marked diminishing returns and only important during the early stages of firm internationalization. On policy, export promotion policies should target supporting start-ups to access export markets