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Products or markets: What type of experience matters for export survival?

Author

Listed:
  • Martina Lawless

    (Economic and Social Research Institute)

  • Zuzanna Studnicka

    (University College Dublin)

Abstract

Previous research has generally shown that increased export experience is positively correlated with the subsequent survival of newly launched export flows by a firm. In this paper, we find that there are important differences in the relationship between firm experience and export survival depending on the source of the experience. Specifically, experience built up by a firm from previously exporting a particular product before launching it in a new market is positively associated with the survival of a new product-market flow. In contrast, experience within a market prior to adding a new product has a mainly negative correlation with the survival probability of the new product-market export flow. This shows that taking a successful product to new markets is more likely to succeed than expanding product range within a market. We further find evidence suggestive of firms bringing their most established products to a wider range of markets while launching new product lines in their more established markets.

Suggested Citation

  • Martina Lawless & Zuzanna Studnicka, 2024. "Products or markets: What type of experience matters for export survival?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 160(1), pages 75-98, February.
  • Handle: RePEc:spr:weltar:v:160:y:2024:i:1:d:10.1007_s10290-023-00507-3
    DOI: 10.1007/s10290-023-00507-3
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    More about this item

    Keywords

    Duration of trade; Firm survival; Export experience; Multi-product firms;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General

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