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Exporter Dynamics and Partial-Year Effects

Andrew Bernard (), Esther Ann Bøler, Renzo Massari, José-Daniel Reyes and Daria Taglioni

American Economic Review, 2017, vol. 107, issue 10, 3211-28

Abstract: Two identical firms who start exporting in different months, one each in January and December, will report dramatically different exports for the first calendar year. This partial-year effect biases down first-year export levels and biases up first-year export growth rates. For Peruvian exporters, the partial-year bias is large: first-year export levels are understated by 54 percent and the first-year growth rate is overstated by 112 percentage points. Correcting the partial-year effect dramatically reduces first-year export growth rates, raises initial export levels, and almost doubles the contribution of net firm entry and exit to overall export growth.

JEL-codes: D22 F14 O14 O19 (search for similar items in EconPapers)
Date: 2017
Note: DOI: 10.1257/aer.20141070
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Handle: RePEc:aea:aecrev:v:107:y:2017:i:10:p:3211-28