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New Exports from Emerging Markets:Do Followers Beneit from Pioneers ?

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  • Rodrigo Wagner

    () (Department of Economics, Harvard University)

  • Andrés Zahler

    () (Facultad de Economía y Empresa, Universidad Diego Portales)

Abstract

We study the micro dynamics of new exports from a country. The modern international trade workhorse models (e.g. Melitz, 2003) assume heterogeneous productivity and, implicitly, predict that the ex-post largest exporters in a new product would be the pioneers, since they can pay back exploration costs. However, using detailed data on the early dynamics of new exports in Chile (1990–2007) we show that, on average, pioneers export less than comparable followers in the same new product. Moreover, followers are 40% more likely to enter a product if a pioneer survives more than one year exporting. These facts are consistent with pioneer-to-follower spillovers, or at least with stories in which the cost of entering early is disproportionally higher for larger exporters. Otherwise they would enter first. Firms better at “exploration” could be worse at “exploitation” (scale-up) in a new export product. This phenomenon is scarce, though, since in most new products pioneers are not followed, even if they survive.
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Suggested Citation

  • Rodrigo Wagner & Andrés Zahler, 2011. "New Exports from Emerging Markets:Do Followers Beneit from Pioneers ?," Working Papers 18, Facultad de Economía y Empresa, Universidad Diego Portales.
  • Handle: RePEc:ptl:wpaper:18
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    Cited by:

    1. Wei, Shang-Jin & Wei, Ziru & Xu, Jianhuan, 2014. "Assessing Market Failures in Export Pioneering Activities: A Structural Estimation Approach," CEPR Discussion Papers 10187, C.E.P.R. Discussion Papers.
    2. Cebeci, Tolga & Fernandes, Ana M. & Freund, Caroline & Pierola, Martha Denisse, 2012. "Exporter dynamics database," Policy Research Working Paper Series 6229, The World Bank.
    3. Stirbat, Liviu & Record, Richard & Nghardsaysone, Konesawang, 2013. "Determinants of export survival in the Lao PDR," Policy Research Working Paper Series 6301, The World Bank.
    4. Goya, Daniel, 2014. "Política industrial: Qué es, por qué es necesaria, y su pasado, presente y futuro en Chile
      [Industrial policy: What is it, why it is necessary, and its past, present and future in Chile]
      ," MPRA Paper 64881, University Library of Munich, Germany.
    5. Enrique Moral-Benito, 2013. "Agglomeration Matters for Trade," 2013 Meeting Papers 85, Society for Economic Dynamics.
    6. -, 2012. "Latin America and the Caribbean in the World Economy 2011-2012: Continuing crisis in the centre and new opportunities for developing economies," Panorama de la Inserción Internacional de América Latina y el Caribe, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 1187 edited by Eclac, December.
    7. Stirbat, Liviu & Record, Richard & Nghardsaysone, Konesawang, 2015. "The Experience of Survival: Determinants of Export Survival in Lao PDR," World Development, Elsevier, vol. 76(C), pages 82-94.
    8. Fernandes, Ana M. & Freund, Caroline & Pierola, Martha Denisse, 2016. "Exporter behavior, country size and stage of development: Evidence from the exporter dynamics database," Journal of Development Economics, Elsevier, vol. 119(C), pages 121-137.
    9. Tomasz Serwach, 2012. "Why Learning by Exporting May Not Be As Common As You Think and What It Means for Policy," International Journal of Management, Knowledge and Learning, International School for Social and Business Studies, Celje, Slovenia, vol. 1(2), pages 157-172.
    10. Céline Carrère & Vanessa Strauss-Kahn, 2017. "Export survival and the dynamics of experience," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 153(2), pages 271-300, May.
    11. Artopoulos, Alejandro & Friel, Daniel & Hallak, Juan Carlos, 2013. "Export emergence of differentiated goods from developing countries: Export pioneers and business practices in Argentina," Journal of Development Economics, Elsevier, vol. 105(C), pages 19-35.

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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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