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Export Dynamics in Colombia:Firm-Level Evidence

Author

Listed:
  • Jonathan Eaton
  • Marcela Eslava
  • Maurice Kugler
  • James Tybout

Abstract

Research in international trade, both theoretical and quantitative, is increasingly focussedon the role of firm heterogeneity in shaping trade flows. One strand of the literature showshow firm-specific productivity shocks affect the mix of exporting firms and their foreign salesvolumes (e.g., Clerides, Lach, and Tybout, 1998; Bernard and Jensen, 1999; Melitz, 2003;Bernard, Eaton, Jensen, and Kortum, 2003; Das, Roberts, and Tybout, 2007; Bernard, Jensen,Reading, and Schott, 2007). These studies provide insight into why some producers export andothers do not, and the role of market entry costs in shaping export dynamics. Another strandof the literature documents and interprets the relationship between firms´ productivity levelsand the collection of foreign markets that they serve (Eaton, Kortum, and Kramarz, 2004 and2007). These papers find that most exporting firms sell to only one foreign market, with thefrequency of firms´ selling to multiple markets declining with the number of destinations. Atthe same time, firms selling to only a small number of markets tend to sell to the most popularones. Less popular markets are served by firms that export very widely. These patterns areconsistent with the notion that firms with relatively low marginal costs can profitably exploitrelatively more foreign markets.

Suggested Citation

  • Jonathan Eaton & Marcela Eslava & Maurice Kugler & James Tybout, 2007. "Export Dynamics in Colombia:Firm-Level Evidence," BORRADORES DE ECONOMIA 003957, BANCO DE LA REPÚBLICA.
  • Handle: RePEc:col:000094:003957
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    References listed on IDEAS

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    1. Kugler, Maurice, 2006. "Spillovers from foreign direct investment: Within or between industries?," Journal of Development Economics, Elsevier, vol. 80(2), pages 444-477, August.
    2. Brooks, Eileen L., 2006. "Why don't firms export more? Product quality and Colombian plants," Journal of Development Economics, Elsevier, vol. 80(1), pages 160-178, June.
    3. Costas Arkolakis, 2007. "Market Access Costs and the New Consumers Margin in International Trade," 2007 Meeting Papers 234, Society for Economic Dynamics.
    4. 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.
    5. Andrew B. Bernard & Jonathan Eaton & J. Bradford Jensen & Samuel Kortum, 2003. "Plants and Productivity in International Trade," American Economic Review, American Economic Association, vol. 93(4), pages 1268-1290, September.
    6. Eslava, Marcela & Haltiwanger, John & Kugler, Adriana & Kugler, Maurice, 2004. "The effects of structural reforms on productivity and profitability enhancing reallocation: evidence from Colombia," Journal of Development Economics, Elsevier, vol. 75(2), pages 333-371, December.
    7. Andrew B. Bernard & J. Bradford Jensen & Stephen J. Redding & Peter K. Schott, 2007. "Firms in International Trade," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 105-130, Summer.
    8. Jonathan Eaton & Samuel Kortum & Francis Kramarz, 2004. "Dissecting Trade: Firms, Industries, and Export Destinations," American Economic Review, American Economic Association, vol. 94(2), pages 150-154, May.
    9. Sofronis K. Clerides & Saul Lach & James R. Tybout, 1998. "Is Learning by Exporting Important? Micro-Dynamic Evidence from Colombia, Mexico, and Morocco," The Quarterly Journal of Economics, Oxford University Press, vol. 113(3), pages 903-947.
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    • F10 - International Economics - - Trade - - - General

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