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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. Andrew B. Bernard & J. Bradford Jensen & Stephen J. Redding & Peter K. Schott, 2007. "Firms in International Trade," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 105-130, Summer.
    2. 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.
    3. Thomas Chaney, 2008. "Distorted Gravity: The Intensive and Extensive Margins of International Trade," American Economic Review, American Economic Association, vol. 98(4), pages 1707-1721, September.
    4. Davide Castellani & Francesco Serti & Chiara Tomasi, 2008. "Firms in International Trade: Importers and Exporters Heterogeneity in the Italian Manufacturing Industry," LEM Papers Series 2008/04, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    5. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    6. Jonathan Eaton & Samuel Kortum & Francis Kramarz, 2004. "Dissecting Trade: Firms, Industries, and Export Destinations," American Economic Review, American Economic Association, vol. 94(2), pages 150-154, May.
    7. Joachim Wagner, 2007. "Exports and Productivity: A Survey of the Evidence from Firm-level Data," The World Economy, Wiley Blackwell, vol. 30(1), pages 60-82, January.
    8. 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.
    9. 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.
    10. James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," Review of Economic Studies, Oxford University Press, vol. 70(2), pages 317-341.
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    Cited by:

    1. Fassio, Claudio, 2015. "Export-led innovation: the role of export destinations," Papers in Innovation Studies 2015/17, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
    2. Fernanda Ricotta, 2016. "Productivity Differences By Export Destination," Working Papers 201601, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.

    More about this item

    Keywords

    Heterogeneous firms; Exports; Productivity; Market of destination;

    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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