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Export entrepreneurship and trade structure in Latin America during good and bad times

Author

Listed:
  • Fernandes, Ana M.
  • Lederman, Daniel
  • Gutierrez-Rocha, Mario

Abstract

The authors use a new dataset on export transactions for a large set of Latin American and Caribbean and comparator countries to assess the extent of"export entrepreneurship"during periods of fast export growth (2005-2007) and depressed external demand (2008-2009). Export entrepreneurship is equated with the extensive margin of exports, namely the advent of new exporting firms, new export products, and new export market destinations. The main findings are: (1) annual exporter entry, exit, and survival rates in Latin America and the Caribbean are quite similar to what is observed in other countries, and entry rates across sectors are quite similar but survival rates appear to be highest in agriculture; (2) the relative size of entrants into export markets (relative to incumbents) tended to be lower for natural resource-abundant countries during 2005-2007, but less so during the crisis years of 2008-2009; (3) entry rates tend to be lower in sectors in which a country has revealed comparative advantage, however, exit rates and survival rates of new exporters are higher in those sectors; and (4) the low growth of exports during the global recession of 2008-2009 in Latin America and the Caribbean was due to lower growth in exports of incumbent firms'pre-existing products and destinations, while new products and destinations tended to attenuate the recession's effects. Overall, the data suggest that the Latin American and Caribbean region appears to be no less entrepreneurial in terms of the extensive margins of exports than comparator countries.

Suggested Citation

  • Fernandes, Ana M. & Lederman, Daniel & Gutierrez-Rocha, Mario, 2013. "Export entrepreneurship and trade structure in Latin America during good and bad times," Policy Research Working Paper Series 6413, The World Bank.
  • Handle: RePEc:wbk:wbrwps:6413
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    References listed on IDEAS

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    Cited by:

    1. Munemo, Jonathan, 2022. "Export entrepreneurship promotion: The role of regulation-induced time delays and institutions," International Review of Economics & Finance, Elsevier, vol. 77(C), pages 262-275.
    2. Tolga Cebeci & Ana M. Fernandes, 2015. "Microdynamics of Turkey's Export Boom in the 2000s," The World Economy, Wiley Blackwell, vol. 38(5), pages 825-855, May.
    3. Joachim Wagner, 2016. "A survey of empirical studies using transaction level data on exports and imports," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(1), pages 215-225, February.
    4. Wagner Joachim, 2016. "Exporter and Importer Dynamics Database for Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 236(3), pages 411-420, May.
    5. Juan de Lucio & Raúl Mínguez & Asier Minondo & Francisco Requena, 2014. "Does the partial year effect invalidate the evidence on new exporters?," Working Papers 1401, Department of Applied Economics II, Universidad de Valencia.
    6. Park, Hyunju & Mulder, Nanno & Park, Yuri, 2018. "Export innovation of SMEs through the extensive margin in Latin America," Comercio Internacional 44113, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).

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    More about this item

    Keywords

    Currencies and Exchange Rates; Free Trade; Debt Markets; Export Competitiveness; Country Strategy&Performance;
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