Sequential exporting
Many new exporters give up exporting very shortly, despite substantial entry costs; others shoot up foreign sales and expand to new destinations. We develop a model based on experimentation to rationalize these and other dynamic patterns of exporting firms. We posit that individual export profitabil...
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ftciteseerx:oai:CiteSeerX.psu:10.1.1.364.3924 2023-05-15T18:12:22+02:00 Sequential exporting Facundo Albornoz Héctor F. Calvo Pardo Emanuel Ornelas Gregory Corcos The Pennsylvania State University CiteSeerX Archives 2012 http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.364.3924 http://www.aeaweb.org/aea/2011conference/program/retrieve.php?pdfid=133 en eng http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.364.3924 http://www.aeaweb.org/aea/2011conference/program/retrieve.php?pdfid=133 Metadata may be used without restrictions as long as the oai identifier remains attached to it. http://www.aeaweb.org/aea/2011conference/program/retrieve.php?pdfid=133 JEL Codes F10 D21 F13 Keywords Export dynamics experimentation uncertainty learning trade liberalization We thank Costas Arkolakis David Atkin Sami Berlinski Jordi Blanes-i-Vidal John Bluedorn Holger Breinlich text 2012 ftciteseerx 2016-01-08T00:58:43Z Many new exporters give up exporting very shortly, despite substantial entry costs; others shoot up foreign sales and expand to new destinations. We develop a model based on experimentation to rationalize these and other dynamic patterns of exporting firms. We posit that individual export profitability, while initially uncertain, is positively correlated over time and across destinations. This leads to “sequential exporting, ” where the possibility of profitable expansion at the intensive and extensive margins makes initial entry costs worthwhile despite high failure rates. Firm-level evidence from Argentina’s customs, which would be difficult to reconcile with existing models, strongly supports this mechanism. Importantly, sequential exporting has novel policy implications: a reduction in trade barriers has delayed effects, while also promoting entry in third markets. This trade externality poses challenges for the quantification of the effects of trade liberalization programs and implies that the consequences of international trade agreements are significantly richer than traditional models suggest. Text sami Unknown |
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JEL Codes F10 D21 F13 Keywords Export dynamics experimentation uncertainty learning trade liberalization We thank Costas Arkolakis David Atkin Sami Berlinski Jordi Blanes-i-Vidal John Bluedorn Holger Breinlich |
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JEL Codes F10 D21 F13 Keywords Export dynamics experimentation uncertainty learning trade liberalization We thank Costas Arkolakis David Atkin Sami Berlinski Jordi Blanes-i-Vidal John Bluedorn Holger Breinlich Facundo Albornoz Héctor F. Calvo Pardo Emanuel Ornelas Gregory Corcos Sequential exporting |
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JEL Codes F10 D21 F13 Keywords Export dynamics experimentation uncertainty learning trade liberalization We thank Costas Arkolakis David Atkin Sami Berlinski Jordi Blanes-i-Vidal John Bluedorn Holger Breinlich |
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Many new exporters give up exporting very shortly, despite substantial entry costs; others shoot up foreign sales and expand to new destinations. We develop a model based on experimentation to rationalize these and other dynamic patterns of exporting firms. We posit that individual export profitability, while initially uncertain, is positively correlated over time and across destinations. This leads to “sequential exporting, ” where the possibility of profitable expansion at the intensive and extensive margins makes initial entry costs worthwhile despite high failure rates. Firm-level evidence from Argentina’s customs, which would be difficult to reconcile with existing models, strongly supports this mechanism. Importantly, sequential exporting has novel policy implications: a reduction in trade barriers has delayed effects, while also promoting entry in third markets. This trade externality poses challenges for the quantification of the effects of trade liberalization programs and implies that the consequences of international trade agreements are significantly richer than traditional models suggest. |
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The Pennsylvania State University CiteSeerX Archives |
format |
Text |
author |
Facundo Albornoz Héctor F. Calvo Pardo Emanuel Ornelas Gregory Corcos |
author_facet |
Facundo Albornoz Héctor F. Calvo Pardo Emanuel Ornelas Gregory Corcos |
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Facundo Albornoz |
title |
Sequential exporting |
title_short |
Sequential exporting |
title_full |
Sequential exporting |
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Sequential exporting |
title_full_unstemmed |
Sequential exporting |
title_sort |
sequential exporting |
publishDate |
2012 |
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http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.364.3924 http://www.aeaweb.org/aea/2011conference/program/retrieve.php?pdfid=133 |
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http://www.aeaweb.org/aea/2011conference/program/retrieve.php?pdfid=133 |
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http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.364.3924 http://www.aeaweb.org/aea/2011conference/program/retrieve.php?pdfid=133 |
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Metadata may be used without restrictions as long as the oai identifier remains attached to it. |
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