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Sequential exporting

Albornoz, Facundo, Pardo, Héctor F. Calvo, Corcos, Gregory and Ornelas, Emanuel (2012) Sequential exporting Journal of International Economics, 88, (1), pp. 17-31. (doi:10.1016/j.jinteco.2012.02.007).

Record type: Article

Abstract

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

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More information

e-pub ahead of print date: 20 February 2012
Keywords: export dynamics, trade liberalization, experimentation, uncertainty
Organisations: Economics

Identifiers

Local EPrints ID: 80134
URI: http://eprints.soton.ac.uk/id/eprint/80134
ISSN: 0022-1996
PURE UUID: f886db7b-6909-4d1f-b909-5c025d1ae558
ORCID for Héctor F. Calvo Pardo: ORCID iD orcid.org/0000-0001-6645-4273

Catalogue record

Date deposited: 24 Mar 2010
Last modified: 18 Jul 2017 23:14

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Contributors

Author: Facundo Albornoz
Author: Gregory Corcos
Author: Emanuel Ornelas

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