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Export emergence of differentiated goods from developing countries: Export pioneers and business practices in Argentina

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  • Artopoulos, Alejandro
  • Friel, Daniel
  • Hallak, Juan Carlos

Abstract

This study explores the underlying factors that enable firms from developing countries to successfully export differentiated goods to developed countries. The article describes four case studies of export emergence in differentiated-good sectors in Argentina, namely wine, television programs, motorboats, and wooden furniture. The case studies rely primarily on an extensive set of interviews. We find that consistent exporters to developed countries adopt a new set of business practices that differ starkly from those that prevail in their domestic market. In three of the sectors, an export pioneer led the adoption of these new practices. Export pioneers possessed tacit knowledge about foreign markets, achieved through their previous embeddedness in the business community of those markets. Export emergence occurs as business practices diffuse throughout the sector. These findings point to the importance of foreign market knowledge, relative to production knowledge, as the key constraint to achieve consistent export to developed countries.

Suggested Citation

  • Artopoulos, Alejandro & Friel, Daniel & Hallak, Juan Carlos, 2013. "Export emergence of differentiated goods from developing countries: Export pioneers and business practices in Argentina," Journal of Development Economics, Elsevier, vol. 105(C), pages 19-35.
  • Handle: RePEc:eee:deveco:v:105:y:2013:i:c:p:19-35
    DOI: 10.1016/j.jdeveco.2013.07.001
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    2. David Atkin & Azam Chaudhry & Shamyla Chaudhry & Amit K. Khandelwal & Eric Verhoogen, 2015. "Markup and Cost Dispersion across Firms: Direct Evidence from Producer Surveys in Pakistan," American Economic Review, American Economic Association, vol. 105(5), pages 537-544, May.
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    4. Cebreros Zurita Carlos Alfonso, 2016. "The Rewards of Self-Discovery: Learning and Firm Exporter Dynamics," Working Papers 2016-08, Banco de México.
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    7. Christian Volpe Martincus, 2016. "Out of the Border Labyrinth: An Assessment of Trade Facilitation Initiatives in Latin America and the Caribbean," IDB Publications (Books), Inter-American Development Bank, number 96856, February.
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    More about this item

    Keywords

    Export business practices; Export emergence; Embeddedness; Export pioneer; Diffusion; Case studies; Product quality; Export dynamics;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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