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Firm strategies in expanding and diversifying exports

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  • Martina Lawless
  • Iulia Siedschlag
  • Zuzanna Studnicka

Abstract

This paper provides novel empirical evidence on the patterns and dynamics of exports by Irish firms over the past two decades from a highly detailed data set of export records at the firm‐product‐destination level. We identify patterns of export concentration and specialisation and how these evolved over time. Firms’ strategies for export growth along product and destination markets mixes are then examined and the contributions of intensive (average sales) and extensive (number of products or markets) margins to overall exports and to export growth are calculated. We find that most exporting firms are quite small, selling a few products to a small number of destinations while export values are dominated by a relatively small group of highly globalised large firms selling many products to many destinations. Continuing exporters frequently introduce new products, drop products and enter and exit markets. Export growth in the case of Irish‐owned exporters appears largely driven by the extensive margin of product and destination changes. However, the opposite pattern holds for foreign‐owned firms with growth mainly coming from the intensive margin.

Suggested Citation

  • Martina Lawless & Iulia Siedschlag & Zuzanna Studnicka, 2019. "Firm strategies in expanding and diversifying exports," The World Economy, Wiley Blackwell, vol. 42(2), pages 349-375, February.
    • Handle: RePEc:bla:worlde:v:42:y:2019:i:2:p:349-375
    DOI: 10.1111/twec.12702
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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. Kemal Türkcan & Socrates Majune Kraido & Eliud Moyi, 2022. "Export margins and survival: A firm‐level analysis using Kenyan data," South African Journal of Economics, Economic Society of South Africa, vol. 90(2), pages 149-174, June.
    3. Martina Lawless & Zuzanna Studnicka, 2019. "Old Firms and New Export Flows: Does Experience Increase Survival?," Working Papers 201919, School of Economics, University College Dublin.
    4. Joseph Phiri & Karel Malec & Socrates Kraido Majune & Seth Nana Kwame Appiah-Kubi & Zdeňka Gebeltová & Sylvie Kobzev Kotásková & Mansoor Maitah & Kamil Maitah & Patricia Naluwooza, 2021. "Durability of Zambia’s Agricultural Exports," Agriculture, MDPI, vol. 11(1), pages 1-14, January.
    5. Matteo Bugamelli & Andrea Linarello & Roberta Serafini, 2019. "The 'Margin call'. Export experience and firm entry into new export markets," Questioni di Economia e Finanza (Occasional Papers) 536, Bank of Italy, Economic Research and International Relations Area.
    6. Silviano Esteve‐Pérez, 2021. "Previous experience, experimentation and export survival: Evidence from firm‐product‐destination level data," The World Economy, Wiley Blackwell, vol. 44(9), pages 2638-2682, September.

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