Export Strategies of New Exporters: Why is Export Expansion Along the Extensive Margins so Sluggish?

Joze Damijan, Crt Kostevc and Sašo Polanec

LICOS Discussion Papers from LICOS - Centre for Institutions and Economic Performance, KU Leuven

Abstract: Recent theoretical models of international trade with heterogeneous firms feature instan- taneous adjustment of margins of exports to firm and market characteristics, and equality of distributions of margins of exports between new and incumbent exporters. By using the pop- ulation of Slovenian firms and their transaction-level trade data we document large differences between these firms that cannot be attributed to the differences in total factor productivity. This paper contributes to the field by demonstrating that access to financing, measured by eq- uity, debt-to-asset ratio and access to internal credit markets within firm groups, may account for an important part of observed differences in the extensive margins of exports between new and incumbent exporters.

Keywords: exports; multi-product Â…rms; Â…rm heterogeneity; Â…nancial constraints (search for similar items in EconPapers)
JEL-codes: D24 F12 F14 (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:lic:licosd:27711

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