This paper describes the dynamics of rms' exports to dierent countries. Using a panel of almost 19,000 French exporters, we de ne an export-relation as an observed positive export ow from a French rm to a destination. We establish the following facts: 1. There is a great deal of dynamics in rms' export relations that washes out at a more aggregate level; 2. Export values shipped by individual rms to speci c destinations are very volatile: most of the changes occur within established export relations (intensive margin), with new relations or relations that are terminated (extensive margin)contributing little to adjustments in export value at rm level ; 3. Export ows within a newly-created relation involve very small values, often inferior to 1000 euros; 4. Export-relations are also very volatile. Moreover, from year to year single rms create and destroy relations simultaneously, and countries are simultaneously involved in the formation and termination of relations; 5. Formation or termination of export relations and changes in export values are explained mostly by rm-country speci c shocks; 6. The share of relations continued from one year to the next is correlated with country characteristics: it is higher in bigger and closer markets. We discuss how those ndings could be related to dierent kinds of heterogeneous rm models and to a relation-speci c trade model, arguing that the second one seems to t more naturally all the documented facts.
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Paper provided by University of Vienna, Department of Economics in its series Vienna Economics Papers with number
0901.
Find related papers by JEL classification: F14 - International Economics - - Trade - - - Country and Industry Studies of Trade F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
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Luis Araujo & Emanuel Ornelas, 2007.
"Trust-Based Trade,"
CEP Discussion Papers
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[Downloadable!]
Other versions:
J Bradford Jensen & Andrew B Bernard, 2001.
"Why Some Firms Export,"
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01-05, Center for Economic Studies, U.S. Census Bureau.
[Downloadable!]
Andrew B. Bernard & J. Bradford Jensen, 2001.
"Why Some Firms Export,"
NBER Working Papers
8349, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)