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Does the partial year effect invalidate the evidence on new exporters?

Author

Listed:
  • Juan de Lucio

    (High Council of Spanish Chambers of Commerce)

  • Raúl Mínguez

    (High Council of Spanish Chambers of Commerce)

  • Asier Minondo

    (Deusto Business School)

  • Francisco Requena

    (University of Sheffield)

Abstract

The literature shows that new exporters have small levels of exports relative to regular exporters upon entry, and, if they survive, they have very high export growth rates between the entry year and the next year. However, a recent paper by Bernard et al. (2014), using Peruvian data, has shown that these empirical facts might be biased by the partial year effect firms that start to export late during the year have a lower level of exports upon entry and a higher growth rate between the entry year and the next year. In this paper, we test the partial year effect for Spain, a country with a much larger number of exporters and a more diversified export structure than Peru. We confirm that the partial year undervalues entry levels and overvalues growth rates. However, despite these adjustments, new exporters still have much lower export values and much higher growth rates than regular exporters.

Suggested Citation

  • 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.
  • Handle: RePEc:eec:wpaper:1401
    as

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    File URL: ftp://147.156.210.157/RePEc/pdf/eec_1401.pdf
    File Function: First version, 2014
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    References listed on IDEAS

    as
    1. Lawless, Martina, 2009. "Firm export dynamics and the geography of trade," Journal of International Economics, Elsevier, vol. 77(2), pages 245-254, April.
    2. Albornoz, Facundo & Calvo Pardo, Héctor F. & Corcos, Gregory & Ornelas, Emanuel, 2012. "Sequential exporting," Journal of International Economics, Elsevier, pages 17-31.
    3. Jonathan Eaton, Marcela Eslava, Maurice Kugler,James Tybout, 1970. "Export Dynamics in Colombia: Firm-Level Evidence," Working Papers eg0036, Wilfrid Laurier University, Department of Economics, revised 1970.
    4. Jonathan Eaton & Samuel Kortum & Francis Kramarz, 2011. "An Anatomy of International Trade: Evidence From French Firms," Econometrica, Econometric Society, vol. 79(5), pages 1453-1498, September.
    5. Berthou, A. & Vicard, V., 2013. "Firms' Export Dynamics: Experience vs. Size," Working papers 445, Banque de France.
    6. Buono, Ines & Fadinger, Harald & Berger, Stefan, 2008. "The Micro Dynamics of Exporting: Evidence from French Firms," MPRA Paper 12940, University Library of Munich, Germany.
    7. Bernard, Andrew B. & Massari, Renzo & Reyes, Jose-Daniel & Taglioni, Daria, 2013. "Exporter dynamics, firm size and growth, and partial year effects," Policy Research Working Paper Series 6711, The World Bank.
    8. Juan de Lucio & Raúl Mínguez-Fuentes & Asier Minondo & Francisco Requena-Silvente, 2011. "The extensive and intensive margins of Spanish trade," International Review of Applied Economics, Taylor & Francis Journals, vol. 25(5), pages 615-631, January.
    9. Blum, Bernardo S. & Claro, Sebastian & Horstmann, Ignatius J., 2013. "Occasional and perennial exporters," Journal of International Economics, Elsevier, vol. 90(1), pages 65-74.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    new exporters; partial year effect; Spain; exports growth;

    JEL classification:

    • F1 - International Economics - - Trade

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