Sunk exporting costs and export market coverage

Eleonora Fichera and Yevgeniya Shevtsova

Manchester School, 2020, vol. 88, issue 4, 599-616

Abstract: This paper provides evidence on the role of sunk costs in the market expansion of continuing exporters, explicitly accounting for the number of target export destinations. We use dynamic count data models to address the discrete non‐negative nature and skewed distribution of the dependent variable, the number of export markets. By examining the trade patterns of individual firms, we find that past export market coverage significantly improves the ability of Ukrainian exporters for further expansion. The results also indicate that information spillovers from neighbouring firms and foreign ownership are not important factors for the market expansion of incumbent exporters.

Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1111/manc.12311

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:manchs:v:88:y:2020:i:4:p:599-616

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1463-6786

Access Statistics for this article

Manchester School is currently edited by Keith Blackburn

More articles in Manchester School from University of Manchester Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().