Firm export participation: entry, spillovers and tradability
AbstractThis article analyses the choices made by individual firms to enter the export market. A probit specification tests the probability of exporting in the current period given past exporting experience, controlling for the firm's initial export status. This article uses a two-step estimation procedure suggested by Orme (1997, 2001), which controls for the influence of initial conditions. Significant evidence of sunk costs was found, based on the observed persistence of export activity and the explanatory power of previous exporting experience on current export status. A measure of sector tradability was also used and as expected firms in more easily traded sectors were most likely to be exporters. However, little evidence of spillovers was found in determining export market participation.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics.
Volume (Year): 41 (2009)
Issue (Month): 5 ()
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Web page: http://www.tandfonline.com/RAEC20
Other versions of this item:
- Lawless, Martina, 2005. "Firm Export Participation: Entry, Spillovers and Tradability," MPRA Paper 10005, University Library of Munich, Germany.
- Lawless, Martina, 2005. "Firm Export Participation: Entry, Spillovers and Tradability," Research Technical Papers 6/RT/05, Central Bank of Ireland.
- F10 - International Economics - - Trade - - - General
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
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- Ziliang Deng & Adam Blake & Rod Falvey, . "Quantifying Foreign Direct Investment Productivity Spillovers: A Computable General Equilibrium Framework for China," Discussion Papers 09/18, University of Nottingham, GEP.
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