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Export Strategies of New Exporters: Why is Export Expansion Along the Extensive Margins so Sluggish?

Author

Listed:
  • Jože P. Damijan
  • ÄŒrt Kostevc
  • SaÅ¡o Polanec

Abstract

Recent theoretical models of international trade with heterogeneous firms feature instan- taneous adjustment of margins of exports to firm and market characteristics, and equality of distributions of margins of exports between new and incumbent exporters. By using the pop- ulation of Slovenian firms and their transaction-level trade data we document large differences between these firms that cannot be attributed to the differences in total factor productivity. This paper contributes to the field by demonstrating that access to financing, measured by eq- uity, debt-to-asset ratio and access to internal credit markets within firm groups, may account for an important part of observed differences in the extensive margins of exports between new and incumbent exporters.

Suggested Citation

  • Jože P. Damijan & ÄŒrt Kostevc & SaÅ¡o Polanec, 2011. "Export Strategies of New Exporters: Why is Export Expansion Along the Extensive Margins so Sluggish?," LICOS Discussion Papers 27711, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  • Handle: RePEc:lic:licosd:27711
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    File URL: http://www.econ.kuleuven.be/licos/publications/dp/dp277.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Jože P. Damijan & Jozef Konings & Sašo Polanec, 2014. "Import Churning and Export Performance of Multi-product Firms," The World Economy, Wiley Blackwell, vol. 37(11), pages 1483-1506, November.
    2. Jaan Masso & Priit Vahter, 2011. "Exporting And Productivity: The Effects Of Multi-Market And Multi-Product Export Entry," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 83, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    3. repec:eee:eecrev:v:98:y:2017:i:c:p:169-188 is not listed on IDEAS
    4. Mau, Karsten, 2017. "US policy spillover(?) – China’s accession to the WTO and rising exports to the EU," European Economic Review, Elsevier, vol. 98(C), pages 169-188.
    5. Jože Damijan & Jozef Konings & Sašo Polanec, 2013. "Pass-on trade: why do firms simultaneously engage in two-way trade in the same varieties?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 149(1), pages 85-111, March.
    6. Lili Wang & Yong Zhao, 2013. "Does Experience Facilitate Entry into New Export Destinations?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 21(5), pages 36-59, September.

    More about this item

    Keywords

    exports; multi-product Â…rms; Â…rm heterogeneity; Â…nancial constraints;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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