Export decision under risk
José De Sousa (),
Anne-Célia Disdier and
Carl Gaigne
European Economic Review, 2020, vol. 121, issue C
Abstract:
We show that economic uncertainty in foreign markets affects firms’ economic decisions, particularly those of the most productive firms. Using export data at both the industry and firm levels, we uncover two empirical regularities. First, demand uncertainty in foreign markets affects export entry/exit decisions (extensive margin) and export sales (intensive margin). If all destination countries exhibited the lowest volatility observed across destinations, then total French exports would rise by approximately 18% (an increase primarily driven by the extensive margin). Second, the most productive exporters are more affected by a higher industry-wide expenditure volatility than are the least productive exporters. The 25% most productive firms export, on average, 27% more in value than the 25% least productive firms in less volatile markets, while this difference decreases to 12% in the most volatile markets.
Keywords: Firm exports; Demand uncertainty; Expenditure volatility; Skewness (search for similar items in EconPapers)
JEL-codes: D21 D22 F12 F14 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0014292119302028
Full text for ScienceDirect subscribers only
Related works:
Working Paper: Export decision under risk (2020)
Working Paper: Export decision under risk (2020)
Working Paper: Export decision under risk (2020)
Working Paper: Export Decision under Risk (2019) 
Working Paper: Export Decision under Risk (2019) 
Working Paper: Export Decision under Risk (2017) 
Working Paper: Export Decision under Risk (2017) 
Working Paper: Export Decision under Risk (2016) 
Working Paper: Export decision under risk (2015) 
Working Paper: Export Decision under Risk (2015) 
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:eee:eecrev:v:121:y:2020:i:c:s0014292119302028
DOI: 10.1016/j.euroecorev.2019.103342
Access Statistics for this article
European Economic Review is currently edited by T.S. Eicher, A. Imrohoroglu, E. Leeper, J. Oechssler and M. Pesendorfer
More articles in European Economic Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().