On the Duration of Trade
AbstractThis paper employs survival analysis to study the duration of US imports. We find that the median duration of exporting a product to the US is very short, on the order to two to four years. Our results also indicate that there is negative duration dependence meaning that if a country is able to survive in the exporting market for the first few years it will face a very small probability of failure and will export the product for a long period of time. This result holds across countries and industries. We find that our results are not only robust to aggregation but are strengthened by aggregation. That is, as we aggregate from product level trade data to SITC industry level trade data the estimated survival increases. We rank countries by their survival experience and show that our rankings are strongly correlated with the rankings in Feenstra and Rose (2002), implying that product cycle followers also experience particularly short duration.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 9936.
Date of creation: Sep 2003
Date of revision:
Publication status: published as Besedes, Tibor and Thomas J. Prusa. "Ins, Outs, And The Duration Of Trade," Canadian Journal of Economics, 2006, v39(1,Feb), 266-295.
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Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F19 - International Economics - - Trade - - - Other
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-08-31 (All new papers)
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