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Market Experiences and Export Decisions in Heterogeneous Firms


  • Johansson, Sara

    () (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)


This empirical analysis focus on the impact of firm characteristics, firms’ export experiences and location-specific variables on export decisions in Swedish manufacturing firms. Three choices of export market participation are considered: permanent export, occasional export and no export. The paper also analyzes firms’ choice of expanding export activities. The empirical results indicate that firm-level variables such as size, human capital intensity and labor productivity increases the probability of a firm being a permanent exporter rather than an occasional or non-exporter. Moreover, firms located in regions with a high concentration of other firms exporting commodities in the same product group have a higher probability of both permanent and occasional export market participation. The results also show a significant positive effect of firms’ export experiences in the previous period on the probability that a firm becomes a permanent exporter in the current period. The analysis of export market expansion suggest that firms with high human capital intensity and experiences from exporting several products to several markets are more likely to introduce a new export product. The probability of expanding to new geographical markets seems to be increasing with firm-level labor productivity and export experiences from multiple markets in previous periods.

Suggested Citation

  • Johansson, Sara, 2009. "Market Experiences and Export Decisions in Heterogeneous Firms," Working Paper Series in Economics and Institutions of Innovation 196, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  • Handle: RePEc:hhs:cesisp:0196

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    References listed on IDEAS

    1. Philip McCann, 2007. "Globalization and economic geography: the world is curved, not flat," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 1(3), pages 351-370.
    2. Edward Glaeser & Janet Kohlhase, 2003. "Cities, regions and the decline of transport costs," Economics of Governance, Springer, vol. 83(1), pages 197-228, October.
    3. Tor Jakob Klette & Samuel Kortum, 2004. "Innovating Firms and Aggregate Innovation," Journal of Political Economy, University of Chicago Press, vol. 112(5), pages 986-1018, October.
    4. William Gould, 1993. "Quantile regression with bootstrapped standard errors," Stata Technical Bulletin, StataCorp LP, vol. 2(9).
    5. Börje Johansson & Johan Klaesson & Michael Olsson, 2002. "Time distances and labor market integration," Papers in Regional Science, Springer;Regional Science Association International, vol. 81(3), pages 305-327.
    6. Sterlacchini, Alessandro, 1999. "Do innovative activities matter to small firms in non-R&D-intensive industries? An application to export performance," Research Policy, Elsevier, vol. 28(8), pages 819-832, November.
    7. Rauch James E., 1993. "Productivity Gains from Geographic Concentration of Human Capital: Evidence from the Cities," Journal of Urban Economics, Elsevier, vol. 34(3), pages 380-400, November.
    8. Flam, Harry & Helpman, Elhanan, 1987. "Industrial policy under monopolistic competition," Journal of International Economics, Elsevier, vol. 22(1-2), pages 79-102, February.
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    More about this item


    export behavior; firm heterogeneity; learning-by-exporting; experiential knowledge; knowledge spillover; agglomeration economies;

    JEL classification:

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

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