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History Matters for the Export Decision: Plant Level Evidence from Turkish Manufacturing Industry

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Author Info

  • Kamil Yılmaz

    ()
    (Department of Economics, Koç University)

  • Şule Özler

    (Economics Department, UCLA)

  • Erol Taymaz

    (Department of Economics, METU)

Abstract

In a dynamic panel data framework, we investigate the factors influencing the export decision of the Turkish manufacturing plants over the 1990-2001 period. Our results support the presence of high sunk costs of entry to export markets, as well as the hypothesis that the full history of export participation matters for the current export decision. We further show that the efect of the past export experience on current export decision rapidly depreciates over time: Recent export market participation matters more than the participation further in the past. Finally, we show that while persistence in exporting helps lower the costs of re-entry today, there are diminishing returns to export experience. Our results are robust to plant characteristics (plant size, technology, composition of the employment), the spillovers from the presence of exporters in the same industry, as well as industry and year efects.

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Bibliographic Info

Paper provided by Koc University-TUSIAD Economic Research Forum in its series Koç University-TUSIAD Economic Research Forum Working Papers with number 0706.

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Length: 40
Date of creation: Mar 2007
Date of revision:
Handle: RePEc:koc:wpaper:0706

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Keywords: Export decision; productivity; sunk costs; plant characteristics;

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References

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  1. Van Biesebroeck, Johannes, 2005. "Exporting raises productivity in sub-Saharan African manufacturing firms," Journal of International Economics, Elsevier, vol. 67(2), pages 373-391, December.
  2. Emre Özçelik & Erol Taymaz, 2001. "Does Innovativeness Matter for International Competitiveness in Developing Countries? The Case of Turkish Manufacturing Industries," ERC Working Papers 0107, ERC - Economic Research Center, Middle East Technical University, revised Jul 2001.
  3. Elhanan Helpman & Marc J. Melitz & Stephen R. Yeaple, 2003. "Export versus FDI," Harvard Institute of Economic Research Working Papers 1998, Harvard - Institute of Economic Research.
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  6. repec:rus:hseeco:121669 is not listed on IDEAS
  7. Mahmut Yasar & Philip Garcia & Carl Nelson & Roderick Rejesus, 2007. "Is there Evidence of Learning-by-Exporting in Turkish Manufacturing Industries?," International Review of Applied Economics, Taylor & Francis Journals, vol. 21(2), pages 293-305.
  8. Choi, E. Kwan & Harrigan, James, 2003. "Handbook of International Trade," Staff General Research Papers 11375, Iowa State University, Department of Economics.
  9. Delgado, Miguel A. & Farinas, Jose C. & Ruano, Sonia, 2002. "Firm productivity and export markets: a non-parametric approach," Journal of International Economics, Elsevier, vol. 57(2), pages 397-422, August.
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  18. Sofronis Clerides & Saul Lach & James Tybout, 1996. "Is "learning-by-exporting" important? Micro-dynamic evidence from Colombia, Mexico and Morocco," Finance and Economics Discussion Series 96-30, Board of Governors of the Federal Reserve System (U.S.).
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  23. Andrew Bernard & Joachim Wagner, 2001. "Export entry and exit by German firms," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 137(1), pages 105-123, March.
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Citations

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Cited by:
  1. Marion Dovis, 2009. "Formulation et estimation des modèles de mesure de la productivité totale des facteurs : une étude sur un panel d'entreprises turques," Revue d'économie politique, Dalloz, vol. 0(6), pages 945-982.
  2. Altan Aldan & Mahmut Gunay, 2008. "Entry to Export Markets and Productivity: Analysis of Matched Firms in Turkey," Working Papers 0805, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
  3. Jennifer Abel-Koch, . "Who uses intermediaries in international trade? Evidence from firm-level survey data," Discussion Papers 11/25, University of Nottingham, GEP.
  4. Céline CARRERE & Vanessa STRAUSS-KAHN, 2014. "Developing Countries Exports Survival in the OECD: Does Experience Matter?," Working Papers P100, FERDI.
  5. Wei, Xuan & Thornsbury, Suzanne, 2011. "Information Cost As A Prior Hurdle to Exporting," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103622, Agricultural and Applied Economics Association.
  6. Bircan, Çağatay, 2011. "Optimal Degree of Foreign Ownership under Uncertainty," Working Papers 617, Research Seminar in International Economics, University of Michigan.
  7. Céline CARRERE & Vanessa STRAUSS-KAHN, 2012. "Exports Dynamics: Raising Developing Countries Exports Survival through Experience," Working Papers P35-A, FERDI.
  8. Love, James H. & Ganotakis, Panagiotis, 2013. "Learning by exporting: Lessons from high-technology SMEs," International Business Review, Elsevier, vol. 22(1), pages 1-17.
  9. Bircan, Çağatay, 2011. "Foreign Direct Investment and Wages: Does the Level of Ownership Matter?," Working Papers 618, Research Seminar in International Economics, University of Michigan.

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