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What makes a successful export?

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Author Info

  • Holger Görg
  • Richard Kneller
  • Balázs Muraközy

Abstract

We analyse a very rich and unique panel database which provides information on exports at the firm-product level. A stylised fact in the data is that many firms add as well as drop products from the export mix in any given year. Motivated by recent theory we investigate what determines the survival of products in the export mix. Estimating hazard models we find evidence that is consistent with the view that characteristics of the product as well as that of the firm matter. This suggests, in line with theory, that there are firm- as well as firm-product specific competencies that are important for shaping firms’ export mix.

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File URL: https://www.ifw-members.ifw-kiel.de/publications/what-makes-a-successful-export-1/kap1399.pdf
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Bibliographic Info

Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1399.

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Length: 35 pages
Date of creation: Feb 2008
Date of revision:
Handle: RePEc:kie:kieliw:1399

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Keywords: export mix; product level; product survival; competencies;

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References

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  1. Andrew B. Bernard & Stephen J. Redding & Peter K. Schott, 2006. "Multi-Product Firms and Trade Liberalization," NBER Working Papers 12782, National Bureau of Economic Research, Inc.
  2. Bernard, Andrew & Redding, Stephen J & Schott, Peter, 2006. "Multi-Product Firms and Product Switching," CEPR Discussion Papers, C.E.P.R. Discussion Papers 5708, C.E.P.R. Discussion Papers.
  3. Andrew B. Bernard & J. Bradford Jensen & Stephen Redding & Peter K. Schott, 2007. "Firms in International Trade," CEP Discussion Papers, Centre for Economic Performance, LSE dp0795, Centre for Economic Performance, LSE.
  4. Greenaway, David & Gullstrand, Joakim & Kneller, Richard, 2008. "Surviving globalisation," Journal of International Economics, Elsevier, Elsevier, vol. 74(2), pages 264-277, March.
  5. Richard Baldwin & James Harrigan, 2007. "Zeros, Quality and Space: Trade Theory and Trade Evidence," NBER Working Papers 13214, National Bureau of Economic Research, Inc.
  6. J Bradford Jensen & Andrew B Bernard, 2001. "Why Some Firms Export," Working Papers, Center for Economic Studies, U.S. Census Bureau 01-05, Center for Economic Studies, U.S. Census Bureau.
  7. Juan Carlos Hallak & Peter K. Schott, 2011. "Estimating Cross-Country Differences in Product Quality," The Quarterly Journal of Economics, Oxford University Press, vol. 126(1), pages 417-474.
  8. Tibor Besedes & Thomas Prusa, 2006. "Ins, outs, and the duration of trade," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 39(1), pages 266-295, February.
  9. Besedes, Tibor & Prusa, Thomas J., 2006. "Product differentiation and duration of US import trade," Journal of International Economics, Elsevier, Elsevier, vol. 70(2), pages 339-358, December.
  10. Volker Nitsch, 2007. "Die Another Day: Duration in German Import Trade," CESifo Working Paper Series 2085, CESifo Group Munich.
  11. Peter K. Schott, 2004. "Across-product Versus Within-product Specialization in International Trade," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 119(2), pages 646-677, May.
  12. 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, American Economic Association, vol. 87(4), pages 545-64, September.
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Citations

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Cited by:
  1. Wolfgang Hess & Maria Persson, 2012. "The duration of trade revisited," Empirical Economics, Springer, Springer, vol. 43(3), pages 1083-1107, December.
  2. Hess, Wolfgang & Persson, Maria, 2009. "Survival and Death in International Trade - Discrete-Time Durations of EU Imports," Working Papers, Lund University, Department of Economics 2009:12, Lund University, Department of Economics.
  3. Alessandro Nicita & Miho Shirotori & Bolormaa Tumurchudur Klok, 2013. "Survival Analysis Of The Exports Of Least Developed Countries: The Role Of Comparative Advantage," UNCTAD Blue Series Papers, United Nations Conference on Trade and Development 54, United Nations Conference on Trade and Development.
  4. João Amador & Luca David Opromolla, 2008. "Product and Destination Mix in Export Markets," Working Papers, Banco de Portugal, Economics and Research Department w200817, Banco de Portugal, Economics and Research Department.
  5. Persson, Maria & Gullstrand, Joakim, 2013. "How to Combine High Sunk Costs of Exporting and Low Export Survival," Working Paper Series, Research Institute of Industrial Economics 962, Research Institute of Industrial Economics.
  6. Jaan Masso & Priit Vahter, 2011. "Exporting And Productivity: The Effects Of Multi-Market And Multi-Product Export Entry," University of Tartu - Faculty of Economics and Business Administration Working Paper Series, Faculty of Economics and Business Administration, University of Tartu (Estonia) 83, Faculty of Economics and Business Administration, University of Tartu (Estonia).
  7. Hess , Wolfgang & Persson, Maria, 2011. "Exploring the Long-Term Evolution of Trade Survival," Working Paper Series, Research Institute of Industrial Economics 880, Research Institute of Industrial Economics.
  8. Christian Volpe Martincus & Jerónimo Carballo, 2008. "Survival of New Exporters in Developing Countries: Does it Matter How They Diversify?," IDB Publications 9291, Inter-American Development Bank.
  9. Balazs Murakozy & Gabor Bekes, 2009. "Temporary Trade," IEHAS Discussion Papers, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences 0909, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
  10. Békés, Gábor & Muraközy, Balázs & Harasztosi, Péter, 2011. "Firms and products in international trade: Evidence from Hungary," Economic Systems, Elsevier, Elsevier, vol. 35(1), pages 4-24, March.
  11. Békés, Gábor & Muraközy, Balázs, 2012. "Temporary trade and heterogeneous firms," Journal of International Economics, Elsevier, Elsevier, vol. 87(2), pages 232-246.

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