Sequential exporting
We present systematic evidence, based on a panel of firm-level Argentine exports, that fledgling exporters are very different from experienced exporters. In particular, new exporters that survive (a) grow faster in their initial markets and (b) are more likely to enter new markets than old exporters...
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ftciteseerx:oai:CiteSeerX.psu:10.1.1.411.3191 2023-05-15T18:12:41+02:00 Sequential exporting Facundo Albornoz Héctor F. Calvo Pardo Emanuel Ornelas Gregory Corcos The Pennsylvania State University CiteSeerX Archives 2012 application/pdf http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.411.3191 http://thema.u-cergy.fr/IMG/pdf/AEE_04_11_2010.pdf en eng http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.411.3191 http://thema.u-cergy.fr/IMG/pdf/AEE_04_11_2010.pdf Metadata may be used without restrictions as long as the oai identifier remains attached to it. http://thema.u-cergy.fr/IMG/pdf/AEE_04_11_2010.pdf 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 2016-01-08T03:21:20Z We present systematic evidence, based on a panel of firm-level Argentine exports, that fledgling exporters are very different from experienced exporters. In particular, new exporters that survive (a) grow faster in their initial markets and (b) are more likely to enter new markets than old exporters. On the other hand, (c) new exporters are also more likely to fail. These distinctions do not apply, however, to firms that either start exporting simultaneously to multiple markets, or that re-start exporting after a break. These empirical findings suggest that firms face significant uncertainty before breaking in foreign markets, and that this uncertainty can only be resolved through experience but has value across markets. We develop a model based on experimentation that rationalizes those findings. We posit that a firm’s export profitability, while initially uncertain, is positively correlated over time and across destinations. This leads to a process of “sequential exporting, ” where the possibility of profitable expansion at the intensive and extensive margins makes initial entry costs worthwhile despite high failure rates. In addition to advancing our understanding of firms ’ decisions to export, our mechanism has novel policy implications. For example, it implies that a reduction in trade barriers in a country Text sami Unknown Argentine |
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English |
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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 |
spellingShingle |
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 |
description |
We present systematic evidence, based on a panel of firm-level Argentine exports, that fledgling exporters are very different from experienced exporters. In particular, new exporters that survive (a) grow faster in their initial markets and (b) are more likely to enter new markets than old exporters. On the other hand, (c) new exporters are also more likely to fail. These distinctions do not apply, however, to firms that either start exporting simultaneously to multiple markets, or that re-start exporting after a break. These empirical findings suggest that firms face significant uncertainty before breaking in foreign markets, and that this uncertainty can only be resolved through experience but has value across markets. We develop a model based on experimentation that rationalizes those findings. We posit that a firm’s export profitability, while initially uncertain, is positively correlated over time and across destinations. This leads to a process of “sequential exporting, ” where the possibility of profitable expansion at the intensive and extensive margins makes initial entry costs worthwhile despite high failure rates. In addition to advancing our understanding of firms ’ decisions to export, our mechanism has novel policy implications. For example, it implies that a reduction in trade barriers in a country |
author2 |
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 |
author_sort |
Facundo Albornoz |
title |
Sequential exporting |
title_short |
Sequential exporting |
title_full |
Sequential exporting |
title_fullStr |
Sequential exporting |
title_full_unstemmed |
Sequential exporting |
title_sort |
sequential exporting |
publishDate |
2012 |
url |
http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.411.3191 http://thema.u-cergy.fr/IMG/pdf/AEE_04_11_2010.pdf |
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Argentine |
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Argentine |
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http://thema.u-cergy.fr/IMG/pdf/AEE_04_11_2010.pdf |
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http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.411.3191 http://thema.u-cergy.fr/IMG/pdf/AEE_04_11_2010.pdf |
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Metadata may be used without restrictions as long as the oai identifier remains attached to it. |
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