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What Makes a Successful Exporter?

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  • 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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Bibliographic Info

Paper provided by University of Nottingham, GEP in its series Discussion Papers with number 08/01.

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Handle: RePEc:not:notgep:08/01

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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 Redding & Peter.K Schott, 2006. "Multi-product firms and product switching," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 3687, London School of Economics and Political Science, LSE Library.
  2. 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.
  3. Volker Nitsch, 2007. "Die Another Day: Duration in German Import Trade," DEGIT Conference Papers, DEGIT, Dynamics, Economic Growth, and International Trade c012_037, DEGIT, Dynamics, Economic Growth, and International Trade.
  4. Baldwin, Richard & Harrigan, James, 2007. "Zeros, Quality and Space: Trade Theory and Trade Evidence," CEPR Discussion Papers, C.E.P.R. Discussion Papers 6368, C.E.P.R. Discussion Papers.
  5. Juan Carlos Hallak & Peter K. Schott, 2011. "Estimating Cross-Country Differences in Product Quality," The Quarterly Journal of Economics, Oxford University Press, Oxford University Press, vol. 126(1), pages 417-474.
  6. Stephen J Redding & Peter K Schott & Andrew B Bernard, 2007. "Multi-product Firms and Trade Liberalization," 2007 Meeting Papers, Society for Economic Dynamics 44, Society for Economic Dynamics.
  7. 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.
  8. Andrew B. Bernard & J. Bradford Jensen, 2004. "Why Some Firms Export," The Review of Economics and Statistics, MIT Press, MIT Press, vol. 86(2), pages 561-569, May.
  9. Greenaway, David & Gullstrand, Joakim & Kneller, Richard, 2008. "Surviving globalisation," Journal of International Economics, Elsevier, Elsevier, vol. 74(2), pages 264-277, March.
  10. Andrew B. Bernard & J. Bradford Jensen & Stephen J. Redding & Peter K. Schott, 2007. "Firms in International Trade," NBER Working Papers 13054, National Bureau of Economic Research, Inc.
  11. 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.
  12. 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.
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Citations

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Cited by:
  1. 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.
  2. 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.
  3. Gábor Békés & Balázs Muraközy, 2011. "Temporary trade and heterogeneous firms," CeFiG Working Papers, Center for Firms in the Global Economy 6, Center for Firms in the Global Economy, revised 13 Feb 2011.
  4. 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.
  5. João Amador & Luca Opromolla, 2013. "Product and destination mix in export markets," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 149(1), pages 23-53, March.
  6. Wolfgang Hess & Maria Persson, 2012. "The duration of trade revisited," Empirical Economics, Springer, Springer, vol. 43(3), pages 1083-1107, December.
  7. 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.
  8. 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.
  9. 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).
  10. 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.
  11. 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.

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