  Exporting plants often undergo significant technology upgrades, becoming more
productive than their domestic counterparts. This process, called learning by
exporting, is usually modeled as a Hicks-neutral TFP shifter, overlooking
factor-biased technical improvements. We develop a dynamic model of production,
exporting, and capital investment that incorporates factor-augmenting
efficiencies. We find that exporting increases TFP by 9%, skilled labor
productivity by 2%, and unskilled labor productivity by 8%. For new exporters,
skilled labor productivity rises by 45%, and unskilled labor productivity
increases by 75% within four years of entering export markets.
