340 exporting and productivity a firm level analysis of the taiwan electronics industry chih hai yang based on panel data taiwanese firms this paper explores relation ship between contemporaneous levels exports pro ductivity are indeed positively correlated causality tests show from to vice versa implying that self selection learning by effects coexist in while effect is less supported also has positive impact productiv ity growth diminishes gradually after entering foreign markets decomposing shows reallocation accounts for only 20 per cent compared own share 80 which mostly con tributed continually export i introduction he role international trade economic been widely discussed over past decades literature focusing relationship ternational performance emphasized an oriented policy usually accompanies higher output many analysts argue developing countries pursue policies generally out perform those embracing import substitution