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Firms' export dynamics: experience vs. size

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  • Berthou, Antoine
  • Vicard, Vincent

Abstract

This paper provides evidence about the impact that size and experience in exporting have on firms' dynamics, a critical input in models of firms' dynamics. The analysis uses a census of French exports by firm-destination-product over the period 1994-2008 with a monthly frequency. We first uncover a large calendar year bias: the growth of exporters between the first and the second year of export is biased upwards because new exporters may start exporting late during the year. This incomplete calendar year reduces export revenue by 32% on average for the first year of export. We then show that, controlling for size, export experience is negatively related to net growth of exports for surviving exporters. Controlling for export experience, the relationship between average size and net growth of exports shows no systematic pattern. Finally, churning in foreign markets is decreasing with export experience and (sharply) with size. JEL Classification: F14

Suggested Citation

  • Berthou, Antoine & Vicard, Vincent, 2013. "Firms' export dynamics: experience vs. size," Working Paper Series 1616, European Central Bank.
  • Handle: RePEc:ecb:ecbwps:20131616
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Berman, Nicolas & Berthou, Antoine & Héricourt, Jérôme, 2015. "Export dynamics and sales at home," Journal of International Economics, Elsevier, vol. 96(2), pages 298-310.
    2. Dhyne, Emmanuel & Demian, Calin-Vlad & Harasztosi, Péter & Meriküll, Jaanika & Lalinsky, Tibor & Cazacu, Ana-Maria & Bugamelli, Matteo & Soares, Ana Cristina & Berthou, Antoine & Oropallo, Filippo, 2015. "Assessing European firms' exports and productivity distributions: the CompNet trade module," Working Paper Series 1788, European Central Bank.
    3. Berman, Nicolas & Rebeyrol, Vincent & Vicard, Vincent, 2015. "Demand learning and firm dynamics: evidence from exporters," CEPR Discussion Papers 10517, C.E.P.R. Discussion Papers.
    4. repec:spr:weltar:v:153:y:2017:i:4:d:10.1007_s10290-017-0286-0 is not listed on IDEAS
    5. A. Berthou. & P. Bourgeon. & V. Vicard., 2013. "Firm competitiveness: summary report on the CompNet conference - Banque de France – 20 and 21 September 2012," Quarterly selection of articles - Bulletin de la Banque de France, Banque de France, issue 30, pages 35-44, Summer.
    6. Berthou, A. & Gaulier, G., 2013. "Dynamiques de salaires et rééquilibrage des comptes courants dans la zone euro," Bulletin de la Banque de France, Banque de France, issue 191, pages 43-58.
    7. repec:bla:reviec:v:25:y:2017:i:4:p:891-923 is not listed on IDEAS
    8. Juan de Lucio & Raúl Mínguez & Asier Minondo & Francisco Requena, 2014. "Does the partial year effect invalidate the evidence on new exporters?," Working Papers 1401, Department of Applied Economics II, Universidad de Valencia.
    9. Conconi, Paola & Sapir, André & Zanardi, Maurizio, 2016. "The internationalization process of firms: From exports to FDI," Journal of International Economics, Elsevier, vol. 99(C), pages 16-30.
    10. Antoine Berthou & Hélène Ehrhart, 2017. "Trade networks and colonial trade spillovers," Review of International Economics, Wiley Blackwell, vol. 25(4), pages 891-923, September.
    11. Joachim Wagner, 2016. "A survey of empirical studies using transaction level data on exports and imports," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(1), pages 215-225, February.
    12. Olga Timoshenko & Paulo Bastos & Daniel Dias, 2016. "Learning, Prices, and Firm Dynamics," Working Papers 2016-11, The George Washington University, Institute for International Economic Policy.
    13. Timoshenko, Olga A., 2015. "Product switching in a model of learning," Journal of International Economics, Elsevier, vol. 95(2), pages 233-249.
    14. Gábor Békés & Lionel Fontagné & Balázs Muraközy & Vincent Vicard, 2017. "Shipment frequency of exporters and demand uncertainty," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 153(4), pages 779-807, November.

    More about this item

    Keywords

    international trade;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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