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Understanding exports from the plant up

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  • George Alessandria
  • Horag Choi

Abstract

Some companies export their products abroad, while others choose to sell only in their home market. Similarly, over time, some nonexporters become exporters and some exporters stop exporting. The decision to export is a big, important decision for an organization, one that takes time and resources but one that can lead to an expansion of sales and profits. Policymakers recognize that although exporting isn?t easy, it can boost sales and create jobs when successful. To help in this process, many states devote substantial resources to encouraging exports, including loans, trade missions, and trade fairs. Even the federal government has policies that encourage exporting, providing special tax treatment of profits on export sales and low-interest loans. In ?Understanding Exports from the Plant Up,? George Alessandria and Horag Choi discuss some key factors that affect companies? decisions to export by describing some salient characteristics of establishments that export and then building a simple model of the decision to export that captures these features.

Suggested Citation

  • George Alessandria & Horag Choi, 2010. "Understanding exports from the plant up," Business Review, Federal Reserve Bank of Philadelphia, issue Q4, pages 1-11.
    • Handle: RePEc:fip:fedpbr:y:2010:i:q4:p:1-11
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    References listed on IDEAS

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    1. Alessandria, George & Choi, Horag, 2014. "Do falling iceberg costs explain recent U.S. export growth?," Journal of International Economics, Elsevier, vol. 94(2), pages 311-325.
    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. 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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