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Distance from core competences and new export survival: Evidence from multi‐product exporters

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  • Daniel Goya
  • Andrés Zahler

Abstract

We study the determinants of the survival of new export products of multi‐product firms. We use micro‐level data from Chile to estimate linear fixed‐effects and non‐linear survival models to show that a measure of “distance” between a firm's new export and its previous export basket is a negative and significant determinant of the survival of the new export, especially during its first year. Our interpretation of this finding is that exports further away from firms’ core competences have lower chances of survival in exports since it is more difficult for firms to achieve competitiveness in them. Our results suggest that country‐level diversification, at least through existing firms, should be gradual.

Suggested Citation

  • Daniel Goya & Andrés Zahler, 2019. "Distance from core competences and new export survival: Evidence from multi‐product exporters," The World Economy, Wiley Blackwell, vol. 42(11), pages 3253-3286, November.
    • Handle: RePEc:bla:worlde:v:42:y:2019:i:11:p:3253-3286
    DOI: 10.1111/twec.12835
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    Cited by:

    1. Martina Lawless & Zuzanna Studnicka, 2019. "Products or Markets: What Type of Experience Matters for Export Survival?," Working Papers 201923, School of Economics, University College Dublin.
    2. Goya, Daniel, 2021. "The network effect of Chinese competition on what domestic suppliers produce," Economic Modelling, Elsevier, vol. 102(C).
    3. Xingye Zhou & Helian Xu, 2024. "Emissions Reduction Target Plan and Export Product Quality: Evidence from China’s 11th Five-Year Plan," Sustainability, MDPI, vol. 16(4), pages 1-21, February.
    4. Majune Kraido Socrates & Eliud Moyi & Kamau Gathiaka, 2020. "Explaining Export Duration in Kenya," South African Journal of Economics, Economic Society of South Africa, vol. 88(2), pages 204-224, June.

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