Extensive margins of trade and firm survival

Erin Hui-Chuan Kao and Jin-Tan Liu

Economics Letters, 2022, vol. 218, issue C

Abstract: Using firm-level transaction data from Taiwan, this study shows that firms that engage in exports alone and import intermediate inputs significantly increase the probability of their survival compared to firms that engage in no external trade. Extending current studies, this study shows that multiproduct and multicountry trading firms are more likely to survive by becoming “leaner and meaner” and trading with a more diverse set of countries.

Keywords: Exports; Firm survival; Imports; Multicountry; Multiproduct (search for similar items in EconPapers)
JEL-codes: D22 F10 F14 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:218:y:2022:i:c:s0165176522002464

DOI: 10.1016/j.econlet.2022.110716

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