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High-growth firms and international trade: evidence from Ecuador

Author

Listed:
  • Segundo Camino-Mogro

    (Universidad Complutense de Madrid
    Universidad Espíritu Santo
    Superintendencia de Compañías Valores y Seguros)

  • Mary Armijos

    (Universidad Ecotec)

  • Paul Vera-Gilces

    (ESPOL Polytechnic University Campus Las Peñas
    Trade Data Lab)

Abstract

The aim of this article is to open a detailed discussion about the relationship between international trade activities (export, import and trade openness) and the probability of becoming a high-growth firm. International trade has been widely related to a variety of outcomes, but there is no evidence of the relationship to high-growth firms. We study this issue by estimating a two-step probit model to correct the problem of self-selection that usually appears in trade research. Additionally, we use matching techniques as a robustness check to address possible endogeneity problems. We find that international trade is a consistent and robust path for becoming a high-growth firm. Several policy implications are derived from our work.

Suggested Citation

  • Segundo Camino-Mogro & Mary Armijos & Paul Vera-Gilces, 2022. "High-growth firms and international trade: evidence from Ecuador," Journal of Evolutionary Economics, Springer, vol. 32(1), pages 299-332, January.
    • Handle: RePEc:spr:joevec:v:32:y:2022:i:1:d:10.1007_s00191-021-00756-1
    DOI: 10.1007/s00191-021-00756-1
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    More about this item

    Keywords

    Firm age; International trade; High-growth firms; Performance;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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