Ins, outs, and the duration of trade

Tibor Besedes and Thomas Prusa

Canadian Journal of Economics, 2006, vol. 39, issue 1, 266-295

Abstract: We employ survival analysis to study the duration of U.S. imports. Our findings indicate international trade is far more dynamic than previously thought. The median duration of exporting a product to the U.S. is very short, on the order of two to four years. There is negative duration dependence. If a country is able to survive in the exporting market for the first few years it will face a very small probability of failure and will likely export the product for a long period of time. The results hold across countries and industries and are robust to aggregation.

JEL-codes: C14 C41 F14 F19 (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (220)

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