Is Previous Exporting Experience Relevant for New Exports?
Recent models of international trade show that trade costs are important determinants of exporting decisions and productivity dynamics. By assuming that these costs are exogenous and constant across firms, these theories do not take into account that experienced firms may have lower trading costs or that new exporters may reduce these costs by observing the decisions of other exporters. This study argues that firms with previous experience exporting a product to a particular market are more likely to start exporting the same product to another market, or a different product to the same market. The paper also contends that the previous experience of other exporters can significantly influence a firm’s decision to introduce a new product to a new market. Using a firm-level dataset from Chile with information on exports by product and destination market, the paper finds that an increase in the cumulative value exported by a firm increases the probability that the firm will export a previously exported product to a different market or a different product to a market to which the firm already exported a product. The results also show that an increase in the cumulative value exported of a product, or to a foreign market, by other exporters raises the probability that firms will export new products and/or to new markets. Our findings are consistent with the idea that previous exporting experience may help reduce the firm’s entry costs to international markets. The rich dataset used in this study allows the identification of these effects controlling for various time-varying observed and unobserved characteristics which may create a spurious correlation between firms’ export decisions, their previous exporting experience, and the export activity of other exporters
|Date of creation:||Nov 2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (562) 670 2000
Fax: (562) 698 4847
Web page: http://www.bcentral.cl/
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.:
- Joze P. Damijan & Saso Polanec & Janez Prasnikar, 2004. "Self-selection, Export Market Heterogeneity and Productivity Improvements: Firm Level Evidence from Slovenia," LICOS Discussion Papers 14804, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- Aitken, Brian & Hanson, Gordon H. & Harrison, Ann E., 1997.
"Spillovers, foreign investment, and export behavior,"
Journal of International Economics,
Elsevier, vol. 43(1-2), pages 103-132, August.
- Aitken, B. & Hanson, G.H. & Harrison, A.E., 1994. "Spillovers, Foreign Investment and Export Behavior," Papers 95-06, Columbia - Graduate School of Business.
- Brian Aitken & Gordon H. Hanson & Ann E. Harrison, 1994. "Spillovers, Foreign Investment, and Export Behavior," NBER Working Papers 4967, National Bureau of Economic Research, Inc.
- Stan D Reid, 1981. "The Decision-Maker and Export Entry and Expansion," Journal of International Business Studies, Palgrave Macmillan, vol. 12(2), pages 101-112, June.
- Greenaway, David & Kneller, Richard, 2008. "Exporting, productivity and agglomeration," European Economic Review, Elsevier, vol. 52(5), pages 919-939, July.
- Baldwin, Richard & Krugman, Paul, 1989.
"Persistent Trade Effects of Large Exchange Rate Shocks,"
The Quarterly Journal of Economics,
MIT Press, vol. 104(4), pages 635-54, November.
- Richard Baldwin & Paul R. Krugman, 1986. "Persistent Trade Effects of Large Exchage Rate Shocks," NBER Working Papers 2017, National Bureau of Economic Research, Inc.
- Roberto Alvarez & Ricardo López, 2005. "Exporting and performance: evidence from Chilean plants," Canadian Journal of Economics, Canadian Economics Association, vol. 38(4), pages 1384-1400, November.
- Greenaway, David & Sousa, Nuno & Wakelin, Katharine, 2004. "Do domestic firms learn to export from multinationals?," European Journal of Political Economy, Elsevier, vol. 20(4), pages 1027-1043, November.
- Facundo Albornoz & Héctor Calvo-Pardo & Gregory Corcos & Emanuel Ornelas, 2010.
LSE Research Online Documents on Economics
28724, London School of Economics and Political Science, LSE Library.
- Albornoz-Crespo, Facundo & Calvo Pardo, Hector F. & Corcos, Gregory & Ornelas, Emanuel, 2010. "Sequential Exporting," CEPR Discussion Papers 8103, C.E.P.R. Discussion Papers.
- Facundo Albornoz & Hector F. Calvo Pardo & Gregory Corcos & Emanuel Ornelas, 2010. "Sequential Exporting," Discussion Papers 10-08, Department of Economics, University of Birmingham.
- Facundo Albornoz & Hector Calvo-Pardo & Gregory Corcos & Emanuel Ornelas, 2010. "Sequential Exporting," CEP Discussion Papers dp0974, Centre for Economic Performance, LSE.
- Hector Calvo & Gregory Corcos & Emanuel Ornelas & Facundo Albornoz, 2010. "Sequential Exporting," 2010 Meeting Papers 1065, Society for Economic Dynamics.
- Andrew Bernard & Joachim Wagner, 2001.
"Export entry and exit by German firms,"
Review of World Economics (Weltwirtschaftliches Archiv),
Springer, vol. 137(1), pages 105-123, March.
- Alfonso A. Irarrazabal & Luca David Opromolla, 2008. "A Theory of Entry and Exit into Exports Markets," Working Papers w200820, Banco de Portugal, Economics and Research Department.
- Dixit, Avinash K, 1989.
"Entry and Exit Decisions under Uncertainty,"
Journal of Political Economy,
University of Chicago Press, vol. 97(3), pages 620-38, June.
- J Bradford Jensen & Andrew B Bernard, 2001.
"Why Some Firms Export,"
01-05, Center for Economic Studies, U.S. Census Bureau.
- BARRIOS, Salvador & GÖRG, Holger & STROBL, Eric, .
"Explaining firms' export behaviour: R&D, spillovers and the destination market,"
CORE Discussion Papers RP
-1654, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Salvador Barrios & Holger Goerg & Eric Strobl, 2003. "Explaining Firms' Export Behaviour: R&D, Spillovers and the Destination Market," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(4), pages 475-496, 09.
- Freund, Caroline & Pierola, Martha Denisse, 2010. "Export entrepreneurs : evidence from Peru," Policy Research Working Paper Series 5407, The World Bank.
- Manuel Agosin & Claudio Bravo-Ortega, 2009.
"The Emergence of New Successful Export Activities in Latin America: The Case of Chile,"
Research Department Publications
3265, Inter-American Development Bank, Research Department.
- Claudio Bravo-Ortega & Manuel Agosin Trumper, 2007. "The Emergence Of New Successful Export Activities In Latin America: The Case Of Chile," Working Papers wp236, University of Chile, Department of Economics.
- Manuel R. Agosin & Claudio Bravo Ortega, 2009. "The Emergence of New Successful Export Activities in Latin America: The Case of Chile," IDB Publications (Working Papers) 44838, Inter-American Development Bank.
- Sanghamitra Das & Mark J. Roberts & James R. Tybout, 2001.
"Market entry costs, producer heterogeneity and export dynamics,"
Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers
03-10, Indian Statistical Institute, New Delhi, India.
- 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.
- Sanghamitra Das & Mark J. Roberts & James R. Tybout, 2001. "Market Entry Costs, Producer Heterogeneity, and Export Dynamics," NBER Working Papers 8629, National Bureau of Economic Research, Inc.
- Leonardo Iacovone & BeataS. Javorcik, 2010. "Multi-Product Exporters: Product Churning, Uncertainty and Export Discoveries," Economic Journal, Royal Economic Society, vol. 120(544), pages 481-499, 05.
- Amin Gutierrez de Pineres, Sheila & Ferrantino, Michael, 1997. "Export diversification and structural dynamics in the growth process: The case of Chile," Journal of Development Economics, Elsevier, vol. 52(2), pages 375-391, April.
- Antoine Berthou & Lionel Fontagné, 2013. "How do Multiproduct Exporters React to a Change in Trade Costs?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 115(2), pages 326-353, 04.
When requesting a correction, please mention this item's handle: RePEc:chb:bcchwp:599. 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: (Claudio Sepulveda)
If references are entirely missing, you can add them using this form.