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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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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
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505552

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  1. Sanghamitra Das & Mark J. Roberts & James R. Tybout, 2007. "Market Entry Costs, Producer Heterogeneity, and Export Dynamics," Econometrica, Econometric Society, vol. 75(3), pages 837-873, 05.
  2. Andrew Cassey & Katherine Schmeiser, 2013. "The agglomeration of exporters by destination," The Annals of Regional Science, Springer, vol. 51(2), pages 495-513, October.
  3. Lawless, Martina, 2007. "Firm Export Dynamics and the Geography of Trade," Research Technical Papers 2/RT/07, Central Bank of Ireland.
  4. 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.
  5. Melitz, Marc J, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," CEPR Discussion Papers 3381, C.E.P.R. Discussion Papers.
  6. George Alessandria & Horag Choi, 2007. "Establishment heterogeneity, exporter dynamics, and the effects of trade liberalization," Working Papers 07-17, Federal Reserve Bank of Philadelphia.
  7. Wolfgang Keller, 2009. "International Trade, Foreign Direct Investment, and Technology Spillovers," NBER Working Papers 15442, National Bureau of Economic Research, Inc.
  8. Jonathan Eaton & Marcela Eslava & Maurice Kugler & James Tybout, 2007. "Export Dynamics in Colombia:Firm-Level Evidence," BORRADORES DE ECONOMIA 003957, BANCO DE LA REPÚBLICA.
  9. De Loecker, Jan, 2007. "Do exports generate higher productivity? Evidence from Slovenia," Journal of International Economics, Elsevier, vol. 73(1), pages 69-98, September.
  10. Pamina Koenig, 2005. "Agglomeration and the Export Decision of French Firms," Working Papers 2005-02, Centre de Recherche en Economie et Statistique.
  11. 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.
  12. 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).
  13. 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.
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