Export Behavior of the Turkish Manufacturing Firms

This article explores the export behavior of Turkish manufacturing firms for the 1989-2010 period. A descriptive analysis and estimated export premiums suggest the superiority of exporters over non-exporters. For Turkey, both self-selection and learning effects are critical. Moreover, previous export experience plays a crucial role in the export propensity of the firms, which implies the existence of high export market entry costs. The existence of sunk costs, self-selection of exporters, and learning by exporting of Turkish manufacturing firms implies that the optimal policy for sustainable growth via exports should include microeconomic reforms that increase productivity and the size of the firms as well as regulations that remove the costs and barriers of exporting.