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Survival of New Exporters in Developing Countries: Does it Matter How They Diversify?

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  • Christian Volpe Martincus
  • Jerónimo Carballo

Abstract

Recent studies have shown that developing countries might have significantly better export performance if they were able to increase the duration of their trade relationships. Evidence on duration of these relationships at the firm level is virtually absent. In this paper, we aim at filling this gap in the literature by analyzing what determines export survival using firm-level data for the whole population of Peruvian new exporters over the period 2000-2006. In particular, we address one question: Does it matter how firms diversify? We find that geographical diversification increases the probability of survival in export markets more than product diversification.

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Bibliographic Info

Paper provided by Inter-American Development Bank in its series IDB Publications with number 9291.

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Date of creation: Dec 2008
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Handle: RePEc:idb:brikps:9291

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Keywords: Trade Agreements; Integration & Trade; Globalization & Regionalization;

References

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Citations

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Cited by:
  1. Marco Fugazza & Alain McLaren, 2013. "Market Access, Export performance and Survival: Evidence from Peruvian Firms," Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva 13021, Institut d'Economie et Econométrie, Université de Genève.
  2. Minondo, Asier & Requena, Francisco, 2011. "¿Qué explica las diferencias en el crecimiento de las exportaciones entre los países de renta media?/What Explains the Differences in Exports Growth Across Middle-Income Countries?," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 29, pages 911 (24 pá, Diciembre.
  3. Céline CARRERE & Vanessa STRAUSS-KAHN, 2012. "Exports Dynamics: Raising Developing Countries Exports Survival through Experience," Working Papers P35-A, FERDI.
  4. Melise Jaud & Madina Kukenova & Martin Strieborny, 2014. "Financial Development and Sustainable Exports: Evidence from Firm-Product Data," CESifo Working Paper Series 4660, CESifo Group Munich.
  5. Wolfgang Hess & Maria Persson, 2011. "Exploring the duration of EU imports," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 147(4), pages 665-692, November.
  6. Jože P. Damijan & Jozef Konings & Sašo Polanec, 2012. "Pass-on Trade: Why do Firms Simultaneously engage in Two-Way Trade in the Same Varieties?," LICOS Discussion Papers 31212, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  7. 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.
  8. Hess , Wolfgang & Persson, Maria, 2011. "Exploring the Long-Term Evolution of Trade Survival," Working Paper Series 880, Research Institute of Industrial Economics.
  9. Xavier Cirera & Anabel Marin & Ricardo Markwald, 2011. "Explaining the Diversification Path of Exporters in Brazil: How Similar and Sophisticated are New Products?," Working Paper Series 2611, Department of Economics, University of Sussex.
  10. Jorge Tovar & Luis Roberto Martínez, 2011. "Diversification, Networks and the Survival of Exporting Firms," DOCUMENTOS CEDE 008733, UNIVERSIDAD DE LOS ANDES-CEDE.
  11. Sergey Kadochnikov & Anna Fedyunina, 2013. "Export diversification in the product space and regional growth: Evidence from Russia," Papers in Evolutionary Economic Geography (PEEG) 1327, Utrecht University, Section of Economic Geography, revised Dec 2013.

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