Export margins and export barriers: uncovering market entry costs of exporters in the Netherlands
AbstractEven though the Netherlands was the worldÃ¢â¬â¢s sixth largest exporter in 2009, the majority of Dutch firms does not engage in international trade at all, possibly because they are unable to cover the costs to enter specific foreign markets. What are these costs that limited the internationalisation of Dutch firms? Using detailed and unique transaction-level data on export patterns of about 1,200 large Dutch firms in the years 2006-2007, this research opens the black box of market entry costs. First, we find that more productive firms are both more likely to engage in exports (extensive margin) and to export larger volumes abroad (intensive margin). Second, next to the common determinants of export volumes, such as market size, transport and trade costs, we find that poorly developed foreign institutions and regulations form important impediments to firms’ export decisions, but not to their subsequent export volume decisions. We also find some evidence that such effects on the export decision are relatively large in small markets, whereas export volumes react more to changes in trade and transport costs in large markets.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by CPB Netherlands Bureau for Economic Policy Analysis in its series CPB Document with number 208.
Date of creation: May 2010
Date of revision:
Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Harold Creusen & Arjan Lejour, 2011.
"Uncertainty and the export decisions of Dutch firms,"
FIW Working Paper series
- Arjan Lejour & Harold Creusen, 2011. "Uncertainty and the export decisions of Dutch firms," CPB Discussion Paper 183, CPB Netherlands Bureau for Economic Policy Analysis.
- Roger Smeets & Harold Creusen, 2011. "Fixed export costs and multi-product firms," CPB Discussion Paper 188, CPB Netherlands Bureau for Economic Policy Analysis.
- Harold Creusen & Henk Kox & Arjan Lejour & Roger Smeets, 2011. "Exploring the Margins of Dutch Exports: A Firm-Level Analysis," De Economist, Springer, vol. 159(4), pages 413-434, December.
- Kox, Henk L.M., 2012.
"Export decisions of services firms between agglomeration effects and market-entry costs,"
39127, University Library of Munich, Germany.
- Henk Kox, 2012. "Export decisions of services firms between agglomeration effects and market-entry costs," CPB Discussion Paper 211, CPB Netherlands Bureau for Economic Policy Analysis.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.