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Information externalities and export duration at the firm level

Author

Listed:
  • Ricardo Arguello
  • Andres F. García
  • Daniel Valderrama

Abstract

Recent empirical work emphasizes the importance of the extensive margin of trade (new exporters, new export activities) for long run export growth. In this context, understanding the determinants of duration of new exporters is key for underpinning the dynamics of exports growth. As new exporters tend to show low survival rates, identifying the determinants of export duration is highly relevant for academic and policy purposes. In this paper, we explore whether information externalities arising from different levels of spatial interaction allow new exporters to increase the duration of their trade activities. For this, we use transaction level data on Colombian exports between 2004 and 2011. Results show that export networks, understood as the agglomeration of exporting firms at different spatial levels, reduce the risk of dropping out from exporting and that this effect is stronger the more similar are export activities carried out by firms.

Suggested Citation

  • Ricardo Arguello & Andres F. García & Daniel Valderrama, 2013. "Information externalities and export duration at the firm level," Documentos de Trabajo 11035, Universidad del Rosario.
  • Handle: RePEc:col:000092:011035
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    File URL: http://repository.urosario.edu.co/bitstream/handle/10336/10983/11035.pdf
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    Cited by:

    1. Wang, Qizhen & Zhu, Yingming & Wang, Yudong, 2017. "The effects of oil shocks on export duration of China," Energy, Elsevier, vol. 125(C), pages 55-61.

    More about this item

    Keywords

    Information externalities; export duration; export dynamics; duration analysis; survival of trade;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies

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