Entry and Exit in International Markets: Evidence from Chilean Data

Roberto Alvarez and Ricardo López Rago

No 2006-014, CAEPR Working Papers from Center for Applied Economics and Policy Research, Department of Economics, Indiana University Bloomington

Abstract: Several studies examine the patterns and determinants of entry and exit in manufacturing industries. Not much work exists on entry and exit in international markets. This paper uses Chilean data to analyze the determinants of entry and exit in and out of export markets. We find that entry and exit rates differ across industries; vary over time; and are positively correlated. The econometric analysis shows that within-industry heterogeneity, measured by differences in productivity or other firm characteristics, has a significant effect on plant turnover in international markets. Our findings reveal that trade costs, factor intensities, and fluctuations in the real exchange rate play a minor role explaining entry and exit. This last result is consistent with hysteresis in international markets.

Keywords: Treatment Entry; Exit; International Markets; Chile (search for similar items in EconPapers)
JEL-codes: D21 F14 O54 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2006-09
New Economics Papers: this item is included in nep-com, nep-ent, nep-int and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Journal Article: Entry and Exit in International Markets: Evidence from Chilean Data* (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:inu:caeprp:2006014

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