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Importing After Exporting

Author

Listed:
  • Facundo Albornoz

    () (Department of Economics, Universidad de San Andres)

  • Ezequiel García Lembergman

    () (Department of Economics, Universidad de San Andres)

Abstract

In this paper, we uncover a novel fact about the relationship between exporting and importing. Using a comprehensive database of Argentine rms, we nd that exporting to a new destination increases the probability of a rm beginning to import from that market within the lapse of one year. We develop a standard model of import behavior and, by testing its predictions, we rule out productivity as an explanation and argue that export entry reduces import xed costs. We show that the e ect is stronger in distant markets and when importing involves non-homogenous and rarely imported goods. Taken together, our results suggest that rms gain knowledge on -or establish links with- potential suppliers after export entry, which reduces the costs associated with searching for import sources.

Suggested Citation

  • Facundo Albornoz & Ezequiel García Lembergman, 2015. "Importing After Exporting," Working Papers 122, Universidad de San Andres, Departamento de Economia, revised Jul 2015.
  • Handle: RePEc:sad:wpaper:122
    as

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    File URL: ftp://webacademicos.udesa.edu.ar/pub/econ/doc122.pdf
    File Function: First version, 2015
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    References listed on IDEAS

    as
    1. Defever, Fabrice & Heid, Benedikt & Larch, Mario, 2015. "Spatial exporters," Journal of International Economics, Elsevier, vol. 95(1), pages 145-156.
    2. Pol Antràs & Teresa C. Fort & Felix Tintelnot, 2017. "The Margins of Global Sourcing: Theory and Evidence from US Firms," American Economic Review, American Economic Association, vol. 107(9), pages 2514-2564, September.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    importing; exporting; trading costs; learning;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • 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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