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Understanding Export Market Success: Evidence from Manufacturing Firms

Author

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  • A. Altuzarra
  • R. Bustillo
  • C. Rodríguez

Abstract

In this paper, we analyse empirically the determinants of the decision to export, and the export share of manufacturing firms using a large balanced panel database of firms from Spain, spanning from 1990 to 2012. We are particularly interested in investigating these determinants by controlling for state dependence, unobserved heterogeneity and endogenous initial conditions of firms. Our findings reveal that firms show a high persistence in export behaviour, and that export volume changes are determined primarily by changes in the intensive margin. In addition, our research suggests that having exported before, having achieved a certain productivity level and being large and foreign-owned, greatly increased the probability of exporting. Moreover, these results hold even for the export share of firms, except for productivity and foreign capital, which seem to be less relevant. Copyright Springer Science+Business Media New York 2016

Suggested Citation

  • A. Altuzarra & R. Bustillo & C. Rodríguez, 2016. "Understanding Export Market Success: Evidence from Manufacturing Firms," Open Economies Review, Springer, vol. 27(1), pages 161-181, February.
    • Handle: RePEc:kap:openec:v:27:y:2016:i:1:p:161-181
    DOI: 10.1007/s11079-015-9368-6
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    Citations

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    Cited by:

    1. Umut Kılınç, 2018. "Assessing Productivity Gains from International Trade in a Small Open Economy," Open Economies Review, Springer, vol. 29(5), pages 953-980, November.
    2. Altuzarra, Amaia & Bustillo, Ricardo & Rodríguez, Carlos, 2018. "Much ado about nothing: No fear of becoming a multinational," International Business Review, Elsevier, vol. 27(1), pages 56-65.
    3. Serrano, Javier & Myro, Rafael, 2019. "From domestic to exporter, what happens? Evidence for Spanish manufacturing firms," Structural Change and Economic Dynamics, Elsevier, vol. 51(C), pages 380-392.
    4. Andrew J. Cassey & Katherine N. Schmeiser & Andreas Waldkirch, 2016. "Exporting Spatial Externalities," Open Economies Review, Springer, vol. 27(4), pages 697-720, September.

    More about this item

    Keywords

    Export determinants; Export intensity; Persistence; Sunk costs; Spain; Dynamic models; C22; F14; L1;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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