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The micro dynamics of exporting: evidence from French firms

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  • Ines Buono

    ()
    (Bank of Italy)

  • Harald Fadinger

    ()
    (University of Vienna)

Abstract

The paper investigates the dynamics of export relationships – defined as shipments by a given firm to a given destination in a given year – in a panel of almost 25,000 French exporters over the five-year period 1995-1999. It describes how the relationships evolve over time, presenting a number of stylized facts that are related to various theories of export dynamics, such as a dynamic sunk-cost model and the recent literature on exporting and learning. We find that export relationships are highly dynamic: a large fraction are created or concluded every year, and the values within relationships fluctuate substantially. Most of these dynamics are explained by relationship-specific shocks, not supply or demand shocks. Also, export values are small at first but gradually increase as relationships mature. Finally, while many export relationships are volatile, others are persistent. Previous exports to a destination substantially increase a firm’s probability of making current exports there. Taken together, these facts correspond better to the learning than to the sunk-cost hypothesis.

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Bibliographic Info

Paper provided by Bank of Italy, Economic Research and International Relations Area in its series Temi di discussione (Economic working papers) with number 880.

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Date of creation: Sep 2012
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Handle: RePEc:bdi:wptemi:td_880_12

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Web page: http://www.bancaditalia.it
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Keywords: trade dynamics; extensive and intensive margin; firm heterogeneity;

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  1. Berman, Nicolas & Berthou, Antoine & Héricourt, Jérôme, 2011. "Export dynamics and sales at home," CEPR Discussion Papers 8684, C.E.P.R. Discussion Papers.
  2. Romain Aeberhardt & Ines Buono & Harald Fadinger, 2009. "Learning, Incomplete Contracts and Ecport Dynamics: Theory and Evidence from French Firms," Vienna Economics Papers 1006, University of Vienna, Department of Economics.
  3. Luis Araujo & Emanuel Ornelas, 2007. "Trust-based trade," LSE Research Online Documents on Economics 19693, London School of Economics and Political Science, LSE Library.
  4. Rubén Segura-Cayuela & Josep M. Vilarrubia, 2008. "Uncertainty and entry into export markets," Banco de Espa�a Working Papers 0811, Banco de Espa�a.
  5. Roberts, Mark J & Tybout, James R, 1997. "The Decision to Export in Colombia: An Empirical Model of Entry with Sunk Costs," American Economic Review, American Economic Association, vol. 87(4), pages 545-64, September.
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  14. Jonathan Eaton, Marcela Eslava, Maurice Kugler,James Tybout, 1970. "Export Dynamics in Colombia: Firm-Level Evidence," Working Papers eg0036, Wilfrid Laurier University, Department of Economics, revised 1970.
  15. Sanghamitra Das & Mark J. Roberts & James R. Tybout, 2007. "Market Entry Costs, Producer Heterogeneity, and Export Dynamics," Econometrica, Econometric Society, vol. 75(3), pages 837-873, 05.
  16. Thomas Chaney, 2008. "Distorted Gravity: The Intensive and Extensive Margins of International Trade," American Economic Review, American Economic Association, vol. 98(4), pages 1707-21, September.
  17. Lawless, Martina, 2009. "Firm export dynamics and the geography of trade," Journal of International Economics, Elsevier, vol. 77(2), pages 245-254, April.
  18. Ottaviano, Gianmarco & Melitz, Marc, 2008. "Market Size, Trade, and Productivity," Scholarly Articles 3229096, Harvard University Department of Economics.
  19. Josep M Vilarrubia & Rubén Segura-Cayuela, 2008. "Uncertainty and entry into export markets," 2008 Meeting Papers 661, Society for Economic Dynamics.
  20. Antoine Berthou & Lionel Fontagné, 2013. "How do Multiproduct Exporters React to a Change in Trade Costs," PSE - Labex "OSE-Ouvrir la Science Economique" hal-00975562, HAL.
  21. Bricongne, Jean-Charles & Fontagné, Lionel & Gaulier, Guillaume & Taglioni, Daria & Vicard, Vincent, 2010. "Exports and sectoral financial dependence: evidence on French firms during the great global crisis," Working Paper Series 1227, European Central Bank.
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