For many developing countries, international trade contributes significantly to aggregate output an economic growth. Exporting provides access to a bigger consumer market, enabling firms to expand production, increase domestic employment and reap higher profits. This can in turn boost firms’ productivity by allowing them to benefit from scale economics under existing manufacturing practices, as well as to invest in innovation and technology upgrading. The very exposure for foreign countries can mediate productivity spillovers across borders. Aside from raising income levels and growth rates, exporting can also reduce volatility over time. By diversifying across multiple consumer markets, exporters may be able to hedge fluctuations in country–specific demand and insure against downturns at home.