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Exporter behavior, country size and stage of development : evidence from the exporter dynamics database

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  • Fernandes,Ana Margarida
  • Freund,Caroline
  • Pierola Castro,Martha D.
  • Fernandes,Ana Margarida
  • Freund,Caroline
  • Pierola Castro,Martha D.

Abstract

This paper presents new data on the micro structure of the export sector for 45 countries and studies how exporter behavior varies with country size and stage of development. Larger countries and more developed countries have more exporters, larger exporters, and a greater share of exports controlled by the top 5 percent. The extensive margin (more firms) plays a greater role than the intensive margin (average size) in supporting exports of larger countries. In contrast, the intensive margin is relatively more important in explaining the exports of richer countries. Exporter entry and exit rates are higher and entrant survival is lower at an early stage of development. The paper discusses the results in light of trade theories with heterogeneous firms and the empirical literature on resource allocation, firm size, and development. An implication from the findings is that developing countries export less because the top of the firm-size distribution is truncated.

Suggested Citation

  • Fernandes,Ana Margarida & Freund,Caroline & Pierola Castro,Martha D. & Fernandes,Ana Margarida & Freund,Caroline & Pierola Castro,Martha D., 2015. "Exporter behavior, country size and stage of development : evidence from the exporter dynamics database," Policy Research Working Paper Series 7452, The World Bank.
  • Handle: RePEc:wbk:wbrwps:7452
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    Cited by:

    1. Alessia Lo Turco & Daniela Maggioni, 2017. "“Glocal” ties: banking development and SEs’ export entry," Small Business Economics, Springer, vol. 48(4), pages 999-1020, April.
    2. Konstantins Benkovskis & Jaan Masso & Olegs Tkacevs & Priit Vahter & Naomitsu Yashiro, 2017. "Export and productivity in global value chains: Comparative evidence from Latvia and Estonia," OECD Economics Department Working Papers 1448, OECD Publishing.
    3. Andrea Ciani & Michele Imbruno, 2017. "Microeconomic mechanisms behind export spillovers from FDI: evidence from Bulgaria," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 153(4), pages 703-734, November.
    4. Alfaro, Laura & Cunat, Alejandro & Fadinger, Harald & Yanping, Liu, 2017. "The real exchange rate, innovation and productivity," Working Papers 17-04, University of Mannheim, Department of Economics.
    5. repec:eee:inteco:v:151:y:2017:i:c:p:26-47 is not listed on IDEAS
    6. repec:spr:empeco:v:54:y:2018:i:2:d:10.1007_s00181-016-1220-3 is not listed on IDEAS
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    8. Lawrence Edwards & Marco Sanfilippo & Asha Sundaram, 2016. "Importing and firm performance New evidence from South Africa," WIDER Working Paper Series 039, World Institute for Development Economic Research (UNU-WIDER).
    9. Fabrice Defever & José-Daniel Reyes & Alejandro Riaño & Gonzalo Varela, 2017. "All These Worlds Are Yours, Except India: The Effectiveness of Export Subsidies in Nepal," CESifo Working Paper Series 6418, CESifo Group Munich.
    10. Defever, F. & Reyes, J-D. & Riaño, A. & Sanchez-Martin, M. E., 2017. "Special Economic Zones and WTO Compliance: Evidence from the Dominican Republic," Working Papers 17/04, Department of Economics, City University London.
    11. Breinlich, Holger & Nocke, Volker & Schutz, Nicolas, 2017. "International aspects of merger policy: A survey," International Journal of Industrial Organization, Elsevier, vol. 50(C), pages 415-429.
    12. Defever, F. & Reyes, J-D., 2016. "Does the Elimination of Export Requirements in Special Economic Zones A ect Export Performance? Evidence from the Dominican Republic," Working Papers 16/04, Department of Economics, City University London.
    13. Busso, Matias & Dinkelman, Taryn & Claudia Martínez, A. & Romero, Dario, 2017. "The effects of financial aid and returns information in selective and less selective schools: Experimental evidence from Chile," Labour Economics, Elsevier, pages 79-91.
    14. Olga Timoshenko & Paulo Bastos & Daniel Dias, 2016. "Learning, Prices, and Firm Dynamics," Working Papers 2016-11, The George Washington University, Institute for International Economic Policy.
    15. Maggioni, Daniela & Lo Turco, Alessia & Gallegati, Mauro, 2016. "Does product complexity matter for firms' output volatility?," Journal of Development Economics, Elsevier, vol. 121(C), pages 94-109.
    16. Ciani, Andrea, 2017. "Income inequality and the quality of imports," DICE Discussion Papers 245, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).

    More about this item

    Keywords

    International Trade and Trade Rules; Access to Finance; Food&Beverage Industry; Common Carriers Industry; Construction Industry; Business Cycles and Stabilization Policies; General Manufacturing; Plastics&Rubber Industry; Textiles; Apparel&Leather Industry; Pulp&Paper Industry; Trade and Services; Rural Labor Markets; Labor Markets;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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