Export Survival in Global Value Chains

David Córcoles (), Carmen Diaz-Mora and Rosario Gandoy ()
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Rosario Gandoy: University of Castilla-La Mancha

No 12-03, Working Papers from Asociación Española de Economía y Finanzas Internacionales

Abstract: This paper focuses on the survival capacity of the trade flows in international production networks, extending the limited empirical evidence. Firstly, we emphasize that these trade relationships are longer-lived than trade in final goods. Secondly, we try to delimit the factors that explain this. Using time-discrete duration models, which control for the existence of unobservable heterogeneity, we find that variables such as initial value of the trade flow, geographic and product diversification, institutional quality, geographic and linguistic proximity and membership in a regional integration agreement play an important role for stability of global production systems. Our results highlight that the high sunk entry costs and the need for trust and reliability in global value chains are factors dissuading radical alterations in the network configuration.

Keywords: International Production Networks; Export Survival; Time-Discrete Duration Models (search for similar items in EconPapers)
JEL-codes: C41 F10 F14 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2012-05
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (4)

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