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Export is an important contributor to growth with numerous direct and indirect macroeconomic benefits. Moreover, firms … focused on identifying reasons behind this superiority of exporters by testing two hypothesis - self-selection and learning by … the validity of learning by doing hypothesis. …
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This paper studies how learning from neighboring firms affects new exporters' performance and dynamics. We develop a … neighbors currently selling there, the level and heterogeneity of their export sales, and the firm's own prior knowledge about … the market. A positive signal about demand inferred from neighbors' export performance raises the firm's probability of …
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