Is learning-by-exporting and self-selection market specific? Evidence from Uganda’s manufacturing sector

Abstract

We examined whether the learning-by-exporting and self-selection  hypotheses were market specific. Using enterprise data of the World Bank (2006), we employed ordinary least squares and probit techniques as  analytical tools. Learning-by-exporting and self-selection propositions were market specific. The scope for learning in an advanced market was greater when compared to the less advanced market. Productivity variable was  statistically more important for entry in an advanced market compared to a less advanced market. Different export destinations were associated with  different productivity gains. Improvement in the microeconomic environment should help in reducing the sunk costs of foreign market entry.

Keywords: Self-selection, Learning-by-exporting, Productivity, Export destinations, Advanced market, Underdeveloped market, Uganda.