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Survival of New Exporters in Developing Countries: Does it Matter How They Diversify?

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  • Volpe Martincus, Christian
  • Carballo, Jerónimo

Abstract

Recent studies have shown that developing countries might have significantly better export performance if they were able to increase the duration of their trade relationships. Evidence on duration of these relationships at the firm level is virtually absent. In this paper, we aim at filling this gap in the literature by analyzing what determines export survival using firm-level data for the whole population of Peruvian new exporters over the period 2000-2006. In particular, we address one question: Does it matter how firms diversify? We find that geographical diversification increases the probability of survival in export markets more than product diversification.

Suggested Citation

  • Volpe Martincus, Christian & Carballo, Jerónimo, 2011. "Survival of New Exporters in Developing Countries: Does it Matter How They Diversify?," IDB Publications (Working Papers) 2494, Inter-American Development Bank.
  • Handle: RePEc:idb:brikps:2494
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Hess , Wolfgang & Persson, Maria, 2011. "Exploring the Long-Term Evolution of Trade Survival," Working Paper Series 880, Research Institute of Industrial Economics.
    2. Wolfgang Hess & Maria Persson, 2011. "Exploring the duration of EU imports," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 147(4), pages 665-692, November.
    3. Dahai Fu & Yanrui Wu, 2014. "Export survival pattern and its determinants: an empirical study of Chinese manufacturing firms," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 28(1), pages 161-177, May.
    4. Joakim Gullstrand & Maria Persson, 2015. "How to combine high sunk costs of exporting and low export survival," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(1), pages 23-51, February.
    5. Melise Jaud & Madina Kukenova & Martin Strieborny, 2015. "Financial Development and Sustainable Exports: Evidence from Firm-product Data," The World Economy, Wiley Blackwell, vol. 38(7), pages 1090-1114, July.
    6. Minondo, Asier & Requena, Francisco, 2011. "¿Qué explica las diferencias en el crecimiento de las exportaciones entre los países de renta media?/What Explains the Differences in Exports Growth Across Middle-Income Countries?," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 29, pages 911(24á.)-9, Diciembre.
    7. Xavier Cirera & Anabel Marin & Ricardo Markwald, 2011. "Explaining the Diversification Path of Exporters in Brazil: How Similar and Sophisticated are New Products?," Working Paper Series 2611, Department of Economics, University of Sussex Business School.
    8. Jorge Tovar & Luis Roberto Martínez, 2011. "Diversification, Networks and the Survival of Exporting Firms," Documentos CEDE 008733, Universidad de los Andes - CEDE.
    9. Marco Fugazza & Alain McLaren, 2014. "Market Access, Export Performance and Survival: Evidence from Peruvian Firms," Review of International Economics, Wiley Blackwell, vol. 22(3), pages 599-624, August.

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