Firm Export Participation: Entry, Spillovers and Tradability
This paper analyses the choices made by individual firms to enter the export market. It uses data on a sample of Irish firms over seventeen years to test whether sunk costs influence the decision to export. A probit specification tests the probability of exporting in the current period given past exporting experience, controlling for the firm’s initial export status. Methodologically, the contribution of this paper is the use of a two-step estimation procedure suggested by Orme (1997), which controls for the influence of initial conditions. In addition, this paper tests for the existence of spillover effects in exporting, in particular if the levels of export activity in a sector increase the probability of a firm participating in the export market. Significant evidence of sunk costs was found, based on the observed persistence of export activity and the explanatory power of previous exporting experience on current export status. A measure of sector tradability was also used, and as expected firms in more easily traded sectors were most likely to be exporters. However, little evidence of spillovers was found in determining export market participation.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
| Length: | 28 pages |
| Date of creation: | Nov 2005 |
| Date of revision: | |
| Handle: | RePEc:cbi:wpaper:6/rt/05 |
| Contact details of provider: | Postal: P.O. Box No. 559, Dame Street, Dublin 2 Phone: (01) 671 6666 Fax: (01) 671 6561 Web page: http://www.centralbank.ie Email: More information through EDIRC
|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Peter L. Swan & John Zeitsch, 1992. "The Emerging Australian Manufacturing Export Response to Microeconomic Reform," Australian Journal of Management, Australian School of Business, vol. 17(1), pages 21-58, June.
- Arulampalam, Wiji & Booth, Alison L & Taylor, Mark P, 2000. "Unemployment Persistence," Oxford Economic Papers, Oxford University Press, vol. 52(1), pages 24-50, January.
- Andrew Henley, 2004. "Self-Employment Status: The Role of State Dependence and Initial Circumstances," Small Business Economics, Springer, vol. 22(1), pages 67-82, 02.
This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.
When requesting a correction, please mention this item's handle: RePEc:cbi:wpaper:6/rt/05. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Fiona Farrelly)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.