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Self selection among different export markets

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  • Serti, Francesco
  • Tomasi, Chiara

Abstract

Using a rich database on Italian manufacturing firms, we test the hypothesis that self-selection mechanisms differ from market to market. We observe significant ex ante productivity differences between firms starting to export to distinct geographical areas. Country characteristics such as size, distances, and productivity are some of the sources that make the entry costs market specific.

Suggested Citation

  • Serti, Francesco & Tomasi, Chiara, 2012. "Self selection among different export markets," Economics Letters, Elsevier, vol. 117(1), pages 102-105.
    • Handle: RePEc:eee:ecolet:v:117:y:2012:i:1:p:102-105
    DOI: 10.1016/j.econlet.2012.04.099
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    References listed on IDEAS

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    1. Bernard, Andrew B. & Bradford Jensen, J., 1999. "Exceptional exporter performance: cause, effect, or both?," Journal of International Economics, Elsevier, vol. 47(1), pages 1-25, February.
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    4. Davide Castellani & Francesco Serti & Chiara Tomasi, 2010. "Firms in International Trade: Importers’ and Exporters’ Heterogeneity in Italian Manufacturing Industry," The World Economy, Wiley Blackwell, vol. 33(3), pages 424-457, March.
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    6. Joachim Wagner, 2016. "Exports and Productivity: A Survey of the Evidence from Firm Level Data," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 1, pages 3-41, World Scientific Publishing Co. Pte. Ltd..
    7. Blanes-Cristóbal, José Vicente & Dovis, Marion & Milgram-Baleix, Juliette & Moro-Egido, Ana I., 2008. "Do sunk exporting costs differ among markets? Evidence from Spanish manufacturing firms," Economics Letters, Elsevier, vol. 101(2), pages 110-112, November.
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    9. repec:hal:spmain:info:hdl:2441/6apm7lruv088iagm4rv2c33jtg is not listed on IDEAS
    10. Thomas Chaney, 2008. "Distorted Gravity: The Intensive and Extensive Margins of International Trade," Post-Print hal-03579844, HAL.
    11. 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 545-564, September.
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    Cited by:

    1. Claudio Fassio, 2018. "Export-led innovation: the role of export destinations," Industrial and Corporate Change, Oxford University Press, vol. 27(1), pages 149-171.
    2. Fernanda Ricotta, 2016. "Productivity Differences By Export Destination," Working Papers 201601, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
    3. Eleonora Fichera & Yevgeniya Shevtsova, 2020. "Sunk exporting costs and export market coverage," Manchester School, University of Manchester, vol. 88(4), pages 599-616, July.

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    More about this item

    Keywords

    Heterogeneous firms; Exports; Productivity; Market of destination;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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