The duration of firm-destination export relationships: Evidence from Spain, 1997-2006
Abstract
This paper uses survival analysis to investigate the duration of Spanish firms’ trade relationships by destination over 1997-2006. Whereas firm export status is highly persistent, firms’ destination portfolio is very dynamic: a typical firm-country exporting relationship has a median duration of two years. Yet, if a firm manages to export to a country beyond two years the risk of exiting that market sharply falls afterwards. The results indicate that not only firm heterogeneity but also destination heterogeneity are crucial to explain survival in export markets. In particular, country (political) risk heavily shapes the effect of firm, product and other destination characteristics on the length of trade relationships. Whereas firm productivity, comparative advantage, partners’ GDP and proximity enhance duration of trade with low-risk countries, they have no effect on trade survival with high-risk countries. On the contrary, information spill-overs are particularly relevant to enhance survival of trade relationships with high-risk countries.Download Info
If 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 Info
Paper provided by Department of Applied Economics II, Universidad de Valencia in its series Working Papers with number 1102.Length: 34 pages
Date of creation: Jan 2011
Date of revision:
Handle: RePEc:eec:wpaper:1102
Contact details of provider:
Postal: Edifici Departamental Oriental, Campus dels Tarongers, Avda. dels Tarongers, S/N (4P15), 46022 - València
Phone: 963 82 83 49
Fax: 963 82 83 54
Email:
Web page: http://www.estructuraeconomica.es
More information through EDIRC
Related research
Keywords: firm exports; export destinations; survival analysis;Other versions of this item:
- Silviano Esteve-Pérez & Francisco Requena-Silvente & Vicente J. Pallardó-Lopez, 2013. "The Duration Of Firm-Destination Export Relationships: Evidence From Spain, 1997–2006," Economic Inquiry, Western Economic Association International, vol. 51(1), pages 159-180, 01.
- C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
- F10 - International Economics - - Trade - - - General
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-01-23 (All new papers)
- NEP-BEC-2011-01-23 (Business Economics)
- NEP-INT-2011-01-23 (International Trade)
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- De Loecker, Jan, 2007.
"Do exports generate higher productivity? Evidence from Slovenia,"
Journal of International Economics,
Elsevier, vol. 73(1), pages 69-98, September.
- Jan De Loecker, 2004. "Do Exports Generate Higher Productivity? Evidence from Slovenia," LICOS Discussion Papers 15104, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Fernandes, Ana M. & Paunov, Caroline, 2012. "The risks of innovation : are innovating firms less likely to die ?," Policy Research Working Paper Series 6103, The World Bank.
- Joachim Wagner, 2012.
"International trade and firm performance: a survey of empirical studies since 2006,"
Review of World Economics (Weltwirtschaftliches Archiv),
Springer, vol. 148(2), pages 235-267, June.
- Wagner, Joachim, 2011. "International Trade and Firm Performance: A Survey of Empirical Studies since 2006," IZA Discussion Papers 5916, Institute for the Study of Labor (IZA).
- Joachim Wagner, 2011. "International Trade and Firm Performance: A Survey of Empirical Studies since 2006," Working Paper Series in Economics 210, University of Lüneburg, Institute of Economics.
- Harold Creusen & Arjan Lejour, 2011.
"Uncertainty and the export decisions of Dutch firms,"
FIW Working Paper series
069, FIW.
- Arjan Lejour & Harold Creusen, 2011. "Uncertainty and the export decisions of Dutch firms," CPB Discussion Paper 183, CPB Netherlands Bureau for Economic Policy Analysis.
- Gullstrand, Joakim & Persson, Maria, 2012.
"How to Combine High Sunk Costs of Exporting and Low Export Survival,"
Working Papers
2012:32, Lund University, Department of Economics.
- Persson, Maria & Gullstrand, Joakim, 2013. "How to Combine High Sunk Costs of Exporting and Low Export Survival," Working Paper Series 962, Research Institute of Industrial Economics.
Lists
This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.Statistics
Access and download statisticsCorrections
When requesting a correction, please mention this item's handle: RePEc:eec:wpaper:1102For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Silviano Esteve).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.

