IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v76y2015icp82-94.html

The Experience of Survival: Determinants of Export Survival in Lao PDR

Author

Listed:
  • Stirbat, Liviu
  • Record, Richard
  • Nghardsaysone, Konesawang

Abstract

This paper explores monthly, firm-level customs records from Laos in the period 2005–10. We analyze the role of two important and related determinants of export survival, experience, and networks, which are particularly relevant for developing countries. We go beyond previous studies by disaggregating contract terminations to consider the possibility of upgrades to superior products. Having prior experience with the export product and destination and strong networks of similar firms has a strong positive impact on chances of simple export survival. The likelihood of upgrading is boosted by destination experience but lowered by familiarity with the product.

Suggested Citation

  • Stirbat, Liviu & Record, Richard & Nghardsaysone, Konesawang, 2015. "The Experience of Survival: Determinants of Export Survival in Lao PDR," World Development, Elsevier, vol. 76(C), pages 82-94.
    • Handle: RePEc:eee:wdevel:v:76:y:2015:i:c:p:82-94
    DOI: 10.1016/j.worlddev.2015.06.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X15001497
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.worlddev.2015.06.007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Nicoletti, Cheti & Rondinelli, Concetta, 2010. "The (mis)specification of discrete duration models with unobserved heterogeneity: A Monte Carlo study," Journal of Econometrics, Elsevier, vol. 159(1), pages 1-13, November.
    2. Mauro Pisu, 2008. "Export destinations and learning-by-exporting : Evidence from Belgium," Working Paper Research 140, National Bank of Belgium.
    3. Koenig, Pamina, 2009. "Agglomeration and the export decisions of French firms," Journal of Urban Economics, Elsevier, vol. 66(3), pages 186-195, November.
    4. World Bank, 2014. "Lao PDR : Trade and Transport Facilitation Assessment," World Bank Publications - Reports 18739, The World Bank Group.
    5. Besedes, Tibor & Prusa, Thomas J., 2006. "Product differentiation and duration of US import trade," Journal of International Economics, Elsevier, vol. 70(2), pages 339-358, December.
    6. Brenton, Paul & Newfarmer, Richard, 2007. "Watching more than the Discovery channel : export cycles and diversification in development," Policy Research Working Paper Series 4302, The World Bank.
    7. Andrea Beltramello & Koen De Backer & Laurent Moussiegt, 2012. "The Export Performance of Countries within Global Value Chains (GVCs)," OECD Science, Technology and Industry Working Papers 2012/2, OECD Publishing.
    8. Stirbat, Liviu & Record, Richard & Nghardsaysone, Konesawang, 2011. "Exporting from a small landlocked economy : an assessment of firm-product-destination survival rates in the Lao PDR," Policy Research Working Paper Series 5695, The World Bank.
    9. Cebeci, Tolga & Fernandes, Ana M. & Freund, Caroline & Pierola, Martha Denisse, 2012. "Exporter dynamics database," Policy Research Working Paper Series 6229, The World Bank.
    10. Maria Persson, 2013. "Trade facilitation and the extensive margin," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 22(5), pages 658-693, August.
    11. Rauch, James E. & Watson, Joel, 2003. "Starting small in an unfamiliar environment," International Journal of Industrial Organization, Elsevier, vol. 21(7), pages 1021-1042, September.
    12. Jean-Louis Mucchielli & Pei Yu, 2011. "MNC's location choice and agglomeration: a comparison between US and European affiliates in China," Asia Pacific Business Review, Taylor & Francis Journals, vol. 17(4), pages 431-453, October.
    13. Zhu, Shujin & Fu, Xiaolan, 2013. "Drivers of Export Upgrading," World Development, Elsevier, vol. 51(C), pages 221-233.
    14. Mayer, Thierry & Zignago, Soledad, 2006. "Notes on CEPII’s distances measures," MPRA Paper 26469, University Library of Munich, Germany.
    15. Ana Cristina Molina & Marco Fugazza, 2009. "The determinants of trade survival," IHEID Working Papers 05-2009, Economics Section, The Graduate Institute of International Studies, revised Jun 2009.
    16. Volpe Martincus, Christian & Carballo, Jerónimo, 2008. "Is export promotion effective in developing countries? Firm-level evidence on the intensive and the extensive margins of exports," Journal of International Economics, Elsevier, vol. 76(1), pages 89-106, September.
    17. Tibor Besedeš & Thomas J. Prusa, 2006. "Ins, outs, and the duration of trade," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 39(1), pages 266-295, February.
    18. Araujo, Luis & Mion, Giordano & Ornelas, Emanuel, 2016. "Institutions and export dynamics," Journal of International Economics, Elsevier, vol. 98(C), pages 2-20.
    19. Céline CARRERE & Vanessa STRAUSS-KAHN, 2012. "Exports Dynamics: Raising Developing Countries Exports Survival through Experience," Working Papers P35-A, FERDI.
    20. Marco Fugazza & Ana Cristina Molina, 2011. "On The Determinants Of Exports Survival," UNCTAD Blue Series Papers 46, United Nations Conference on Trade and Development.
    21. Wagner, Rodrigo & Zahler, Andrés, 2015. "New exports from emerging markets: Do followers benefit from pioneers?," Journal of Development Economics, Elsevier, vol. 114(C), pages 203-223.
    22. Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2007. "What you export matters," Journal of Economic Growth, Springer, vol. 12(1), pages 1-25, March.
    23. 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.
    24. Cadot, Olivier & Iacovone, Leonardo & Pierola, Martha Denisse & Rauch, Ferdinand, 2013. "Success and failure of African exporters," Journal of Development Economics, Elsevier, vol. 101(C), pages 284-296.
    25. Michele Fratianni & Chang Hoon Oh, 2009. "Expanding RTAs, trade flows, and the multinational enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(7), pages 1206-1227, September.
    26. World Bank, 2011. "Lao PDR - Investment Climate Assessment : Policies to Promote Growth in the Non-Resource Sectors," World Bank Publications - Reports 2795, The World Bank Group.
    27. Albornoz, Facundo & Calvo Pardo, Héctor F. & Corcos, Gregory & Ornelas, Emanuel, 2012. "Sequential exporting," Journal of International Economics, Elsevier, vol. 88(1), pages 17-31.
    28. Facundo Albornoz & Hector Calvo-Pardo & Gregory Corcos & Emanuel Ornelas, 2012. "Sequential exporting: how firms break into foreign markets," CentrePiece - The magazine for economic performance 364, Centre for Economic Performance, LSE.
    29. Paul Brenton & Christian Saborowski & Erik von Uexkull, 2014. "What Explains the Low Survival Rate of Developing Country Export Flows?," World Scientific Book Chapters, in: INTERNATIONAL TRADE, DISTRIBUTION AND DEVELOPMENT Empirical Studies of Trade Policies, chapter 17, pages 347-372, World Scientific Publishing Co. Pte. Ltd..
    30. Silviano Esteve-Pérez & Amparo Sanchis-Llopis & Juan Sanchis-Llopis, 2010. "A competing risks analysis of firms’ exit," Empirical Economics, Springer, vol. 38(2), pages 281-304, April.
    31. Joachim Wagner, 2016. "Exports, Imports and Firm Survival: First Evidence for Manufacturing Enterprises in Germany," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 10, pages 341-367, World Scientific Publishing Co. Pte. Ltd..
    32. Martuscelli, Antonio & Varela, Gonzalo, 2018. "Survival is for the fittest: Export survival patterns in Georgia," Economic Systems, Elsevier, vol. 42(3), pages 397-413.
    33. Wolfgang Hess & Maria Persson, 2011. "Exploring the duration of EU imports," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 147(4), pages 665-692, November.
    34. Wolfgang Hess & Maria Persson, 2012. "The duration of trade revisited," Empirical Economics, Springer, vol. 43(3), pages 1083-1107, December.
    35. Carrere, Celine, 2006. "Revisiting the effects of regional trade agreements on trade flows with proper specification of the gravity model," European Economic Review, Elsevier, vol. 50(2), pages 223-247, February.
    36. Alvarez, Roberto, 2007. "Explaining Export Success: Firm Characteristics and Spillover Effects," World Development, Elsevier, vol. 35(3), pages 377-393, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stirbat, Liviu & Record, Richard & Nghardsaysone, Konesawang, 2013. "Determinants of export survival in the Lao PDR," Policy Research Working Paper Series 6301, The World Bank.
    2. Pişkin, Erhan, 2017. "Türkiye İhracatının Ölüm-Kalım Meselesi [The Matter of Survival for Turkish Exports]," MPRA Paper 81459, University Library of Munich, Germany.
    3. Céline Carrère & Vanessa Strauss-Kahn, 2017. "Export survival and the dynamics of experience," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 153(2), pages 271-300, May.
    4. Céline CARRERE & Vanessa STRAUSS-KAHN, 2014. "Developing Countries Exports Survival in the OECD: Does Experience Matter?," Working Papers P100, FERDI.
    5. Margalida Murillo & Cindy Paola Leal, 2021. "Tratados de Libre Comercio y duración de las exportaciones: Evidencia a nivel de firma para Colombia," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, vol. 88(6), pages 201-238.
    6. Yang, Bixuan & Asche, Frank & Anderson, James L., "undated". "Trade dynamics and duration of Chinese food imports," 2019 Annual Meeting, July 21-23, Atlanta, Georgia 291085, Agricultural and Applied Economics Association.
    7. Córcoles, David & Díaz-Mora, Carmen & Gandoy, Rosario, 2014. "Product sophistication: A tie that binds partners in international trade," Economic Modelling, Elsevier, vol. 44(S1), pages 33-41.
    8. David Córcoles & Carmen Díaz-Mora & Rosario Gandoy, 2015. "Export Survival in Global Production Chains," The World Economy, Wiley Blackwell, vol. 38(10), pages 1526-1554, October.
    9. David Córcoles & Carmen Díaz-Mora & Rosario Gandoy, 2013. "Product sophistication: A tie that binds partners in international production sharing," Working Papers 13-03, Asociación Española de Economía y Finanzas Internacionales.
    10. Črt Kostevc & Katja Zajc Kejžar, 2020. "Firm‐level export duration: The importance of market‐specific ownership linkages," The World Economy, Wiley Blackwell, vol. 43(5), pages 1277-1308, May.
    11. Zou, Zongsen & Zhang, Yu & Li, Xin & Wang, Xiuling, 2023. "The nexus between product sophistication and export survival: Evidence from China," Structural Change and Economic Dynamics, Elsevier, vol. 67(C), pages 480-502.
    12. Cristian Roner & Chiara Tomasi, 2025. "Survival in export markets: experience, export spillovers and productivity," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 52(2), pages 275-311, June.
    13. MAJUNE, Socrates, 2015. "A discrete time analysis of export duration in Kenya: 1995 -2014," MPRA Paper 68727, University Library of Munich, Germany.
    14. Joakim Gullstrand & Maria Persson, 2015. "How to combine high sunk costs of exporting and low export survival," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(1), pages 23-51, February.
    15. Arjan Lejour, 2015. "The Duration of Dutch Export Relations: Decomposing Firm, Country and Product Characteristics," De Economist, Springer, vol. 163(2), pages 155-176, June.
    16. Ngoc Thang Doan & Thanh Ha Le, 2024. "The Effects of Global Value Chain on Export Survival," Foreign Trade Review, , vol. 59(3), pages 389-411, August.
    17. Türkcan, Kemal, 2016. "On the role of vertical differentiation in enhancing survival of export flows: Evidence from a developing country," MPRA Paper 71023, University Library of Munich, Germany.
    18. Joseph Phiri & Karel Malec & Socrates Kraido Majune & Seth Nana Kwame Appiah-Kubi & Zdeňka Gebeltová & Sylvie Kobzev Kotásková & Mansoor Maitah & Kamil Maitah & Patricia Naluwooza, 2021. "Durability of Zambia’s Agricultural Exports," Agriculture, MDPI, vol. 11(1), pages 1-14, January.
    19. Manuel Tong Koecklin, . "Experimenting in Export Markets," Economics PhD Theses, Department of Economics, University of Sussex Business School, number 0918, December.
    20. Cadot, Olivier & Iacovone, Leonardo & Pierola, Martha Denisse & Rauch, Ferdinand, 2013. "Success and failure of African exporters," Journal of Development Economics, Elsevier, vol. 101(C), pages 284-296.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:76:y:2015:i:c:p:82-94. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.