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Challenges of Exporting Differentiated Products to Developed Countries: The Case of SME-Dominated Sectors in a Semi-Industrialized Country

Author

Listed:
  • Alejandro Artopoulos
  • Daniel Friel
  • Juan Carlos Hallak

Abstract

This paper surveys four Argentinean industries—light ships, television programs, wines, and wooden furniture—that have experienced substantial export growth in recent years, particularly to developed countries. The case studies first describe the structure of the industries, then characterize the emergence of export pioneers and the subsequent process of diffusion. Finally, they analyze the role played by public institutions. Across sectors, the appearance of a pioneer is largely explained by a knowledge advantage relative to other industry participants regarding foreign markets, which the pioneer acquired previously and independently of his decision to export. Diffusion occurs across as well as within sectors, as pioneers’ knowledge is relevant to other industries. Since diffusion does not necessarily hurt the pioneer, public policy has a potentially important role in fostering diffusion within and across sectors.

Suggested Citation

  • Alejandro Artopoulos & Daniel Friel & Juan Carlos Hallak, 2010. "Challenges of Exporting Differentiated Products to Developed Countries: The Case of SME-Dominated Sectors in a Semi-Industrialized Country," Research Department Publications 4677, Inter-American Development Bank, Research Department.
    • Handle: RePEc:idb:wpaper:4677
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    References listed on IDEAS

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    1. Verlegh, Peeter W. J. & Steenkamp, Jan-Benedict E. M., 1999. "A review and meta-analysis of country-of-origin research," Journal of Economic Psychology, Elsevier, vol. 20(5), pages 521-546, October.
    2. Coibion, Olivier & Einav, Liran & Hallak, Juan Carlos, 2007. "Equilibrium demand elasticities across quality segments," International Journal of Industrial Organization, Elsevier, vol. 25(1), pages 13-30, February.
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    Cited by:

    1. Christian Volpe Martincus & Jerónimo Carballo, 2010. "Entering new country and product markets: does export promotion help?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(3), pages 437-467, September.
    2. Christian Volpe Martincus & Jerónimo Carballo, 2010. "Export Promotion: Heterogeneous Programs and Heterogeneous Effects," IDB Publications (Working Papers) 36759, Inter-American Development Bank.
    3. Christian Volpe Martincus & Jerónimo Carballo & Pablo M. Garcia, 2012. "Public programmes to promote firms’ exports in developing countries: are there heterogeneous effects by size categories?," Applied Economics, Taylor & Francis Journals, vol. 44(4), pages 471-491, February.
    4. Daruich, Diego & Easterly, William & Reshef, Ariell, 2019. "The surprising instability of export specializations," Journal of Development Economics, Elsevier, vol. 137(C), pages 36-65.
    5. Valeria Arza & Andres Lopez, 2010. "Innovation and Productivity in the Argentine Manufacturing Sector," Research Department Publications 4681, Inter-American Development Bank, Research Department.
    6. Volpe Martincus, Christian & Carballo, Jerónimo, 2010. "Beyond the average effects: The distributional impacts of export promotion programs in developing countries," Journal of Development Economics, Elsevier, vol. 92(2), pages 201-214, July.
    7. Albornoz, Facundo & Calvo Pardo, Héctor F. & Corcos, Gregory & Ornelas, Emanuel, 2012. "Sequential exporting," Journal of International Economics, Elsevier, vol. 88(1), pages 17-31.
    8. Pushan Dutt & Ana Maria Santacreu & Daniel A. Traca, 2014. "The Gravity of Experience," Working Papers 2014-041, Federal Reserve Bank of St. Louis, revised Oct 2020.
    9. Christian Volpe Martincus & Jerónimo Carballo, 2012. "Export promotion activities in developing countries: What kind of trade do they promote?," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 21(4), pages 539-578, June.
    10. Volpe Martincus, Christian & Carballo, Jerónimo, 2010. "Beyond the average effects: The distributional impacts of export promotion programs in developing countries," Journal of Development Economics, Elsevier, vol. 92(2), pages 201-214, July.
    11. William Easterly & Ariell Reshef, 2014. "African Export Successes: Surprises, Stylized Facts, and Explanations," NBER Chapters, in: African Successes, Volume III: Modernization and Development, pages 297-342, National Bureau of Economic Research, Inc.

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    Keywords

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    JEL classification:

    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • L68 - Industrial Organization - - Industry Studies: Manufacturing - - - Appliances; Furniture; Other Consumer Durables
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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