The duration of firm-destination export relationships: Evidence from Spain, 1997-2006

Silviano Esteve-Pérez, Vicente Pallardó-López and Francisco Requena-Silvente
Additional contact information
Vicente Pallardó-López: University of Valencia
Francisco Requena-Silvente: University of Valencia
Authors registered in the RePEc Author Service: Francisco Requena Silvente

No 1102, Working Papers from Department of Applied Economics II, Universidad de Valencia

Abstract: This paper uses survival analysis to investigate the duration of Spanish firms’ trade relationships by destination over 1997-2006. Whereas firm export status is highly persistent, firms’ destination portfolio is very dynamic: a typical firm-country exporting relationship has a median duration of two years. Yet, if a firm manages to export to a country beyond two years the risk of exiting that market sharply falls afterwards. The results indicate that not only firm heterogeneity but also destination heterogeneity are crucial to explain survival in export markets. In particular, country (political) risk heavily shapes the effect of firm, product and other destination characteristics on the length of trade relationships. Whereas firm productivity, comparative advantage, partners’ GDP and proximity enhance duration of trade with low-risk countries, they have no effect on trade survival with high-risk countries. On the contrary, information spill-overs are particularly relevant to enhance survival of trade relationships with high-risk countries.

Keywords: firm exports; export destinations; survival analysis (search for similar items in EconPapers)
JEL-codes: C41 F10 F14 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2011-01
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 (11)

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http://repecsrv.uv.es/paper/RePEc/pdf/eec_1102.pdf First version, 2011 (application/pdf)

Related works:
Journal Article: THE DURATION OF FIRM-DESTINATION EXPORT RELATIONSHIPS: EVIDENCE FROM SPAIN, 1997–2006 (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eec:wpaper:1102

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