Export-market participation and productivity performance in Canadian manufacturing

In this paper, we explore the linkages between export-market participation and productivity performance in Canadian manufacturing. plants. We also examine differences in the relationship between exporting and productivity for foreign-controlled as opposed to domestic-controlled plants, and between younger and older plants. Export participation is associated with improved productivity. The effect is much stronger for domestic-controlled. plants than for foreign-controlled plants and for younger businesses than for older businesses. We interpret this-as evidence that there is a learning effect associated with export activity but that the potential for improving productivity with entry to, export markets differs across firms.