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Do sunk exporting costs differ among markets? Evidence from Spanish manufacturing firms

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  • Blanes-Cristóbal, José Vicente
  • Dovis, Marion
  • Milgram-Baleix, Juliette
  • Moro-Egido, Ana I.

Abstract

We test whether sunk exporting costs differ among markets. Our results confirm that during 1990-2002, sunk exporting costs were relevant for Spanish firms, and differed depending on the destination market. Besides, the costs to enter/re-enter were higher in developed markets.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 101 (2008)
Issue (Month): 2 (November)
Pages: 110-112

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Handle: RePEc:eee:ecolet:v:101:y:2008:i:2:p:110-112

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Web page: http://www.elsevier.com/locate/ecolet

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Keywords: Sunk costs Heterogeneity of Firms Export Regionalism Developed and Developing Markets;

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References

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  1. BARRIOS, Salvador & GÖRG, Holger & STROBL, Eric, . "Explaining firms' export behaviour: R&D, spillovers and the destination market," CORE Discussion Papers RP -1654, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Roberts, Mark J & Tybout, James R, 1997. "The Decision to Export in Colombia: An Empirical Model of Entry with Sunk Costs," American Economic Review, American Economic Association, vol. 87(4), pages 545-64, September.
  3. Trefler, Daniel, 1995. "The Case of the Missing Trade and Other Mysteries," American Economic Review, American Economic Association, vol. 85(5), pages 1029-46, December.
  4. Campa, Jose Manuel, 2004. "Exchange rates and trade: How important is hysteresis in trade?," European Economic Review, Elsevier, vol. 48(3), pages 527-548, June.
  5. Juan A. Máñez & María E. Rochina-Barrachina & Juan A. Sanchis, 2008. "Sunk Costs Hysteresis in Spanish Manufacturing Exports," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 144(2), pages 272-294, July.
  6. Mark J. Melitz, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," NBER Working Papers 8881, National Bureau of Economic Research, Inc.
  7. Andrew B. Bernard & J. Bradford Jensen, 2001. "Why Some Firms Export," NBER Working Papers 8349, National Bureau of Economic Research, Inc.
  8. José C. Fariñas & Ana Martín-Marcos, 2007. "Exporting and Economic Performance: Firm-level Evidence of Spanish Manufacturing," The World Economy, Wiley Blackwell, vol. 30(4), pages 618-646, 04.
  9. repec:rus:hseeco:122439 is not listed on IDEAS
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Citations

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Cited by:
  1. Gianmarco I.P. Ottaviano & Christian Volpe Martincus, 2009. "SMEs in Argentina: Who are the Exporters?," KITeS Working Papers 024, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Jun 2009.
  2. Fakih, Ali & Ghazalian, Pascal L., 2013. "Why Some Firms Export? An Empirical Analysis for Manufacturing Firms in the MENA Region," IZA Discussion Papers 7172, Institute for the Study of Labor (IZA).
  3. Verardi, Vincenzo & Wagner, Joachim, 2010. "Productivity Premia for German Manufacturing Firms Exporting to the Euro-Area and Beyond: First Evidence from Robust Fixed Effects Estimations," IZA Discussion Papers 4964, Institute for the Study of Labor (IZA).
  4. Joachim Wagner, 2012. "International trade and firm performance: a survey of empirical studies since 2006," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 148(2), pages 235-267, June.
  5. Davidson, Carl & Heyman, Fredrik & Matusz, Steven & Sjöholm, Fredrik & Zhu, Susan Chun, 2014. "Global Engagement and the Occupational Structure of Firms," Working Papers 2014:22, Lund University, Department of Economics.
  6. Wei, Xuan & Thornsbury, Suzanne, 2011. "Information Cost As A Prior Hurdle to Exporting," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103622, Agricultural and Applied Economics Association.
  7. Juliette Milgram-Baleix, 2009. "Do Spanish firms learn from firms located nearby?," Economic Working Papers at Centro de Estudios Andaluces E2009/09, Centro de Estudios Andaluces.
  8. Serti, Francesco & Tomasi, Chiara, 2012. "Self selection among different export markets," Economics Letters, Elsevier, vol. 117(1), pages 102-105.
  9. Gullstrand, Joakim, 2011. "Firm and destination-specific export costs: The case of the Swedish food sector," Food Policy, Elsevier, vol. 36(2), pages 204-213, April.
  10. Iwasaki, Ichiro & Csizmadia, Péter & Illéssy, Miklós & Makó, Csaba & Miklós Szanyi, 2010. "Foreign Direct Investment, Information Spillover, and Export Decision : The Concentric-Circle Model with Application to Hungarian Firm-Level Data," Discussion Paper Series a527, Institute of Economic Research, Hitotsubashi University.

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