Export Dynamics in Colombia:Firm-Level Evidence

Jonathan Eaton (), Marcela Eslava, Maurice Kugler () and James Tybout ()

BORRADORES DE ECONOMIA from BANCO DE LA REPÚBLICA

Abstract: Research in international trade, both theoretical and quantitative, is increasingly focussed on the role of firm heterogeneity in shaping trade flows. One strand of the literature shows how firm-specific productivity shocks affect the mix of exporting firms and their foreign sales volumes (e.g., Clerides, Lach, and Tybout, 1998; Bernard and Jensen, 1999; Melitz, 2003; Bernard, Eaton, Jensen, and Kortum, 2003; Das, Roberts, and Tybout, 2007; Bernard, Jensen, Reading, and Schott, 2007). These studies provide insight into why some producers export and others do not, and the role of market entry costs in shaping export dynamics. Another strand of the literature documents and interprets the relationship between firms’ productivity levels and the collection of foreign markets that they serve (Eaton, Kortum, and Kramarz, 2004 and 2007). These papers find that most exporting firms sell to only one foreign market, with the frequency of firms’ selling to multiple markets declining with the number of destinations. At the same time, firms selling to only a small number of markets tend to sell to the most popular ones. Less popular markets are served by firms that export very widely. These patterns are consistent with the notion that firms with relatively low marginal costs can profitably exploit relatively more foreign markets.

New Economics Papers: this item is included in nep-dev and nep-int
Date: 2007-07-24
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Related works:
Working Paper: Export Dynamics in Colombia: Firm-Level Evidence (2007)
Working Paper: Export Dynamics in Colombia: Firm-Level Evidence (1970)
Working Paper: Export Dynamics in Colombia: Firm-Level Evidence (2007)
Working Paper: Export Dynamics in Colombia: Firm-Level Evidence (2007)
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Persistent link: http://EconPapers.repec.org/RePEc:col:000094:003957

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