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Do sunk exporting costs differ among markets? Evidence from Spanish manufacturing firms

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Author Info
José Vicente Blanes Cristóbal (Universidad Pablo Olavide Sevilla (Spain))
Marion Dovis (Centre d'Economie et de Finances Internationales (France))
Juliette Milgram Baleix () (Department of Economic Theory and Economic History, University of Granada.)
Ana I. Moro Egido () (Department of Economic Theory and Economic History, University of Granada.)

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Abstract

In this paper, we test the hypothesis of sunk exporting costs differing among markets. We use a sample of Spanish firms from Encuesta sobre Estrategias Empresariales (ESEE) for period 1991-2002. Our results confirm the importance of those sunk costs and demonstrate that they differ depending on the market they export to. Although most of the firms exports to developed markets, the costs to enter (and "to re-enter") are greater in those markets.

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File URL: http://www.ugr.es/~teoriahe/RePEc/gra/wpaper/thepapers07_02.pdf
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Publisher Info
Paper provided by Department of Economic Theory and Economic History of the University of Granada. in its series ThE Papers with number 07/02.

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Length: 7 pages
Date of creation: 09 May 2007
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Handle: RePEc:gra:wpaper:07/02

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Related research
Keywords: Sunk costs; heterogeneity of firms; Regionalism.;

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Find related papers by JEL classification:
F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies

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References listed on IDEAS
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  1. 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. [Downloadable!] (restricted)
  2. José C. Fariñas & Ana Martín-Marcos, 2007. "Exporting and Economic Performance: Firm-level Evidence of Spanish Manufacturing," The World Economy, Blackwell Publishing, vol. 30(4), pages 618-646, 04. [Downloadable!] (restricted)
  3. Trefler, Daniel, 1995. "The Case of the Missing Trade and Other Mysteries," American Economic Review, American Economic Association, vol. 85(5), pages 1029-46, December. [Downloadable!] (restricted)
  4. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November. [Downloadable!] (restricted)
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  5. Salvador Barrios & Holger Görg & Eric Strobl, . "Explaining Firms' Export Behaviour: The Role of R&D and Spillovers," Working Papers 2001-12, FEDEA. [Downloadable!]
  6. repec:rus:hseeco:122439 is not listed on IDEAS
  7. Campa, Jose Manuel, 2004. "Exchange rates and trade: How important is hysteresis in trade?," European Economic Review, Elsevier, vol. 48(3), pages 527-548, June. [Downloadable!] (restricted)
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  8. Andrew B. Bernard & J. Bradford Jensen, 2004. "Why Some Firms Export," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 561-569, 04. [Downloadable!] (restricted)
    Other versions:
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