# name
Export Destination and Firm Upgrading: Evidence from Spain

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This paper examines the role of export destinations on firm  upgrading. I exploit the real effective exchange rate devaluation in Spain during the Great Recession to identify the unusual export  performance of manufacturing firms. Using directly observable measures of firm upgrading, I find that increased share of exports to low-income destinations in sales reduced productivity and upgrading efforts of firms. However, real effective exchange rate  devaluation did not affect the share of exports to high-income destinations in sales as well as productivity and upgrading efforts. The results are consistent with the quality sorting hypothesis that  suggests a positive relationship between firm productivity and  product quality. The findings in this paper emphasize that export  market destination is an important determinant in analysing the gains from exportin

# metadata.dc.publisher[].value
Universitat de Barcelona. Facultat d'Economia i Empresa

# metadata.dc.source[].value
Documents de treball (Institut de Recerca en Economia Aplicada Regional i Pública (IREA))

# metadata.dc.title[].value
Export Destination and Firm Upgrading: Evidence from Spain