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Do sunk exporting costs differ among markets? Evidence from Spanish manufacturing firms

  • Blanes-Cristóbal, José Vicente
  • Dovis, Marion
  • Milgram-Baleix, Juliette
  • Moro-Egido, Ana I.

We test whether sunk exporting costs differ among markets. Our results confirm that during 1990-2002, sunk exporting costs were relevant for Spanish firms, and differed depending on the destination market. Besides, the costs to enter/re-enter were higher in developed markets.

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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 101 (2008)
Issue (Month): 2 (November)
Pages: 110-112

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Handle: RePEc:eee:ecolet:v:101:y:2008:i:2:p:110-112
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  1. José C. Fariñas & Ana Martín-Marcos, 2007. "Exporting and Economic Performance: Firm-level Evidence of Spanish Manufacturing," The World Economy, Wiley Blackwell, vol. 30(4), pages 618-646, 04.
  2. Campa, José Manuel, 2000. "Exchange Rates and Trade: How Important is Hysteresis in Trade?," CEPR Discussion Papers 2606, C.E.P.R. Discussion Papers.
  3. Andrew B. Bernard & J. Bradford Jensen, 2004. "Why Some Firms Export," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 561-569, May.
  4. repec:fda:fdaddt:2001-12 is not listed on IDEAS
  5. Trefler, Daniel, 1995. "The Case of the Missing Trade and Other Mysteries," American Economic Review, American Economic Association, vol. 85(5), pages 1029-46, December.
  6. BARRIOS, Salvador & GÖRG, Holger & STROBL, Eric, . "Explaining firms' export behaviour: R&D, spillovers and the destination market," CORE Discussion Papers RP 1654, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  7. Juan A. Máñez & María E. Rochina-Barrachina & Juan A. Sanchis, 2008. "Sunk Costs Hysteresis in Spanish Manufacturing Exports," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 144(2), pages 272-294, July.
  8. Mark J. Melitz, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," NBER Working Papers 8881, National Bureau of Economic Research, Inc.
  9. repec:rus:hseeco:122439 is not listed on IDEAS
  10. Roberts, Mark J & Tybout, James R, 1997. "The Decision to Export in Colombia: An Empirical Model of Entry with Sunk Costs," American Economic Review, American Economic Association, vol. 87(4), pages 545-64, September.
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