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Occasional and perennial exporters

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Author Info

  • Blum, Bernardo S.
  • Claro, Sebastian
  • Horstmann, Ignatius J.

Abstract

We document several new features of firms' export entry and exit behaviors: i) one-third of exporting firms enter into and exit from exporting multiple times; ii) most continuing exporters enter and exit specific export destinations multiple times; iii) firms re-entering exporting often sell the same product(s) to the same importer(s). We provide a model in which this behavior is an optimal response for firms facing increasing costs and stochastic demand. The model has a number of predictions that do not come out of models of trade in which firms have constant marginal cost. Our data strongly support these predictions.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of International Economics.

Volume (Year): 90 (2013)
Issue (Month): 1 ()
Pages: 65-74

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Handle: RePEc:eee:inecon:v:90:y:2013:i:1:p:65-74

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Web page: http://www.elsevier.com/locate/inca/505552

Related research

Keywords: Export decision; Capacity constraints; Specific factor firm-level trade model;

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References

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Citations

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Cited by:
  1. Michele Bernini & Tania Treibich, 2013. "Killing a Second Bird with One Stone? Promoting Firm Growth and Export through Tax Policy," GREDEG Working Papers 2013-30, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
  2. Nicolas Berman, Antoine Berthou,Jérôme Héricourt, 2011. "Export dynamics and sales at home," IHEID Working Papers 14-2011, Economics Section, The Graduate Institute of International Studies.
  3. Soares Esteves, Paulo & Rua, António, 2013. "Is there a role for domestic demand pressure on export performance?," Working Paper Series 1594, European Central Bank.
  4. Juan de Lucio & Raúl Mínguez & Asier Minondo & Francisco Requena, 2014. "Does the partial year effect invalidate the evidence on new exporters?," Working Papers 1401, Department of Applied Economics II, Universidad de Valencia.
  5. Julian di Giovanni & Andrei A. Levchenko & Isabelle M�jean, . "Firms, Destinations, and Aggregate Fluctuations," Working Papers 630, Research Seminar in International Economics, University of Michigan.
  6. Kazunobu HAYAKAWA & Toshiyuki MATSUURA, 2014. "Dynamic Two-way Relationship between Exporting and Importing: Evidence from Japan," Working Papers DP-2014-08, Economic Research Institute for ASEAN and East Asia (ERIA).
  7. Muñoz Sepulveda, Jesus Angel & Rodriguez, Diego, 2013. "Geographical and Industrial Spillovers in entry decisions across export markets," MPRA Paper 48063, University Library of Munich, Germany.
  8. Mario Larch & Wolfgang Lechthaler, 2013. "Whom to send to Doha? The Short-sighted Ones!," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 16(4), pages 634-649, October.
  9. Artopoulos, Alejandro & Friel, Daniel & Hallak, Juan Carlos, 2013. "Export emergence of differentiated goods from developing countries: Export pioneers and business practices in Argentina," Journal of Development Economics, Elsevier, vol. 105(C), pages 19-35.
  10. Ansgar Belke & Anne Oeking & Ralph Setzer, 2013. "Exports and Capacity Constraints – A Smooth Transition Regression Model for Six Euro Area Countries," Ruhr Economic Papers 0449, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  11. JaeBin Ahn & Alexander McQuoid, 2013. "Capacity Constrained Exporters: Micro Evidence and Macro Implications," Working Papers 1301, Florida International University, Department of Economics.
  12. Paulo Soares Esteves & António Rua, 2013. "Is there a role for domestic demand pressure on export performance?," Working Papers w201303, Banco de Portugal, Economics and Research Department.
  13. Christian Holzner & Mario Larch, 2011. "Capacity Constraining Labor Market Frictions in a Global Economy," CESifo Working Paper Series 3597, CESifo Group Munich.
  14. Muñoz Sepúlveda, Jesús A., 2014. "Residual exports and domestic demand: an empirical analysis," MPRA Paper 54799, University Library of Munich, Germany.

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