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The Life-Cycle Dynamics of Exporters and Multinational Firms

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  • Anna Gumpert
  • Haishi Li
  • Andreas Moxnes
  • Natalia Ramondo
  • Felix Tintelnot

Abstract

This paper studies the life-cycle dynamics of exporters and multinational enterprises (MNEs). Using rich firm-level data, we document a comprehensive set of facts on entry, exit, and growth of new exporters and new MNEs. Guided by these facts, we build a model based on the standard proximity-concentration trade-off extended to incorporate time-varying firm productivity and sunk costs of MNE entry. The calibrated version of the model goes far in matching cross-sectional and dynamic moments of the data on exporters and MNEs. We show that including the choice to become an MNE affects the predicted export dynamics after trade liberalization. The different dynamics in a model with and without MNEs hinge on the right truncation of fast-growing exporters induced by the inclusion of the MNE choice.

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  • Anna Gumpert & Haishi Li & Andreas Moxnes & Natalia Ramondo & Felix Tintelnot, 2017. "The Life-Cycle Dynamics of Exporters and Multinational Firms," NBER Working Papers 24013, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:24013
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    7. Pol Antr�s & Evgenii Fadeev & Teresa C. Fort & Felix Tintelnot, 2022. "Global Sourcing and Multinational Activity: A Unified Approach," Working Papers 22-36, Center for Economic Studies, U.S. Census Bureau.
    8. Deseatnicov, Ivan & Klochko, Olga, 2023. "Currency risk and the dynamics of German investors entry and exit in Russia," Emerging Markets Review, Elsevier, vol. 55(C).
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    11. Anderson, James E. & Larch, Mario & Yotov, Yoto V., 2019. "Trade and investment in the global economy: A multi-country dynamic analysis," European Economic Review, Elsevier, vol. 120(C).
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    JEL classification:

    • F1 - International Economics - - Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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