The DNA of New Exporters: Spin-offs and FDI at the Extensive Margin of Trade

Bernardo S. Blum, Sebastian Claro, Ignatius Horstmann and Trevor Tombe

American Economic Review: Insights, 2020, vol. 2, issue 3, 397-408

Abstract: Other than that new exporters account for a large part of aggregate export growth, we know little else. We document that aggregate export growth in Chile is driven by only a few new exporters. These exporters are new business entities, operate new plants, and behave much like experienced exporters: they start large and have high survival rates. Moreover, 70 percent of these new firms are owned by existing businesses and are likely the by-product of either domestic spin-offs or foreign direct investment (24 percent). By focusing on the average new exporter, the existing models of new exporter dynamics miss these key features of export growth.

JEL-codes: F14 F23 L22 L60 M13 O14 O19 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (8)

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DOI: 10.1257/aeri.20190379

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