Learning to export: Export growth and the destination decision of firms
Katherine Schmeiser ()
Journal of International Economics, 2012, vol. 87, issue 1, 89-97
Abstract:
I find evidence that the geographic expansion of firm exports occurs slowly over time and that a large share of export growth is due to incumbent exporters entering new destinations. New exporters enter large countries and destinations with characteristics similar to their domestic market. Less similar, distant or less developed countries are entered by firms already exporting to other destinations. I formulate a dynamic general equilibrium model to test if these patterns are due to firms learning how to export (as other recent empirical findings have suggested) or other factors considered in the literature. In this model, heterogeneous firms experience learning in the form of market entry costs that depend on export history. Using Russian firm level data, I find that learning plays a significant role in explaining the observed entry patterns, which standard trade models cannot account for.
Keywords: International trade; Monopolistic competition; Exports; Learning (search for similar items in EconPapers)
JEL-codes: F12 F13 F14 L10 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (37)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:87:y:2012:i:1:p:89-97
DOI: 10.1016/j.jinteco.2011.11.006
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