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Learning to export: Export growth and the destination decision of firms

  • Schmeiser, Katherine N.

I find evidence that the geographic expansion of firm exports occurs slowly over time and that a large share of export growth is due to incumbent exporters entering new destinations. New exporters enter large countries and destinations with characteristics similar to their domestic market. Less similar, distant or less developed countries are entered by firms already exporting to other destinations. I formulate a dynamic general equilibrium model to test if these patterns are due to firms learning how to export (as other recent empirical findings have suggested) or other factors considered in the literature. In this model, heterogeneous firms experience learning in the form of market entry costs that depend on export history. Using Russian firm level data, I find that learning plays a significant role in explaining the observed entry patterns, which standard trade models cannot account for.

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File URL: http://www.sciencedirect.com/science/article/pii/S0022199611001449
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Article provided by Elsevier in its journal Journal of International Economics.

Volume (Year): 87 (2012)
Issue (Month): 1 ()
Pages: 89-97

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Handle: RePEc:eee:inecon:v:87:y:2012:i:1:p:89-97
DOI: 10.1016/j.jinteco.2011.11.006
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505552

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  1. Alessandria, George & Choi, Horag, 2014. "Establishment heterogeneity, exporter dynamics, and the effects of trade liberalization," Journal of International Economics, Elsevier, vol. 94(2), pages 207-223.
  2. Chin Hee Hahn & Chang Gyun Park, 2009. "Learning-by-exporting in Korean Manufacturing: A Plant-level Analysis," Global COE Hi-Stat Discussion Paper Series gd09-096, Institute of Economic Research, Hitotsubashi University.
  3. Jan De Loecker, 2004. "Do Exports Generate Higher Productivity? Evidence from Slovenia," LICOS Discussion Papers 15104, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  4. Keller, Wolfgang, 2009. "International Trade, Foreign Direct Investment, and Technology Spillovers," CEPR Discussion Papers 7503, C.E.P.R. Discussion Papers.
  5. Jonathan Eaton & Marcela Eslava & Maurice Kugler & James Tybout, 2007. "Export Dynamics in Colombia:Firm-Level Evidence," BORRADORES DE ECONOMIA 003957, BANCO DE LA REPÚBLICA.
  6. Sofronis Clerides & Saul Lach & James Tybout, 1996. "Is "Learning-by-Exporting" Important? Micro-Dynamic Evidence from Colombia, Mexico and Morocco," NBER Working Papers 5715, National Bureau of Economic Research, Inc.
  7. Sanghamitra Das & Mark J. Roberts & James R. Tybout, 2001. "Market entry costs, producer heterogeneity and export dynamics," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 03-10, Indian Statistical Institute, New Delhi, India.
  8. 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.
  9. Koenig, Pamina, 2009. "Agglomeration and the export decisions of French firms," Journal of Urban Economics, Elsevier, vol. 66(3), pages 186-195, November.
  10. Andrew Cassey & Katherine Schmeiser, 2013. "The agglomeration of exporters by destination," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(2), pages 495-513, October.
  11. Lawless, Martina, 2009. "Firm export dynamics and the geography of trade," Journal of International Economics, Elsevier, vol. 77(2), pages 245-254, April.
  12. Chin Hee Hahn, 2005. "Exporting and Performance of Plants: Evidence on Korea," NBER Chapters, in: International Trade in East Asia, NBER-East Asia Seminar on Economics, Volume 14, pages 53-80 National Bureau of Economic Research, Inc.
  13. Chin Hee HAHN & Chang-Gyun PARK, 2009. "Learning-by-exporting in Korean Manufacturing: A Plant-level Analysis," Working Papers d007, Economic Research Institute for ASEAN and East Asia (ERIA).
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