Sequentially Exporting Products across Countries

Facundo Albornoz, Hector Calvo Pardo, Gregory Corcos and Emanuel Ornelas

No 212, Working Papers from Red Nacional de Investigadores en Economía (RedNIE)

Abstract: Exploiting disaggregated data on French exporters, we show that firms expand their product scope and geographical presence sequentially. This process of internationalization is uneven over time, exhibiting more volatility early than later in the life cycle of exporters. Specifically, young exporters are particularly likely to exit, and if they keep exporting, to expand at the intensive and sub-extensive margins, doing so by widening product scope within a destination before enteringnew destinations. We also find that firms’ core products are particularly resilient despite being used to “test the waters” when entering additional countries. Existing models of firm export dynamics are not designed to explain these empirical regularities. We argue that they can be rationalized by a mechanism where new exporters are uncertain about the profitability of their products in different markets, but learn from their initial export experiences and then adjust their sales, number of products and destination countries accordingly.

Keywords: Export dynamics; experimentation; uncertainty; multiproduct firms; market inter- dependence. (search for similar items in EconPapers)
JEL-codes: D22 F10 F14 L25 (search for similar items in EconPapers)
Pages: 98 pages
Date: 2023-02
New Economics Papers: this item is included in nep-bec and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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https://rednie.eco.unc.edu.ar/files/DT/212.pdf (application/pdf)

Related works:
Journal Article: Sequentially exporting products across countries (2023)
Working Paper: Sequentially exporting products across countries (2022)
Working Paper: Sequential Exporting Products across Countries (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:aoz:wpaper:212

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