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Firm export participation: entry, spillovers and tradability

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  • Martina Lawless

Abstract

This 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 Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 41 (2009)
Issue (Month): 5 ()
Pages: 665-675

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Handle: RePEc:taf:applec:v:41:y:2009:i:5:p:665-675

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  1. Arulampalam, Wiji & Booth, Alison L & Taylor, Mark P, 2000. "Unemployment Persistence," Oxford Economic Papers, Oxford University Press, vol. 52(1), pages 24-50, January.
  2. Peter L. Swan & John Zeitsch, 1992. "The Emerging Australian Manufacturing Export Response to Microeconomic Reform," Australian Journal of Management, Australian School of Business, vol. 17(1), pages 21-58, June.
  3. Andrew Henley, 2004. "Self-Employment Status: The Role of State Dependence and Initial Circumstances," Small Business Economics, Springer, vol. 22(1), pages 67-82, 02.
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Cited by:
  1. 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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