Occasional and perennial exporters

Bernardo S. Blum, Sebastian Claro and Ignatius Horstmann

Journal of International Economics, 2013, vol. 90, issue 1, 65-74

Abstract: We document several new features of firms' export entry and exit behaviors: i) one-third of exporting firms enter into and exit from exporting multiple times; ii) most continuing exporters enter and exit specific export destinations multiple times; iii) firms re-entering exporting often sell the same product(s) to the same importer(s). We provide a model in which this behavior is an optimal response for firms facing increasing costs and stochastic demand. The model has a number of predictions that do not come out of models of trade in which firms have constant marginal cost. Our data strongly support these predictions.

Keywords: Export decision; Capacity constraints; Specific factor firm-level trade model (search for similar items in EconPapers)
JEL-codes: F1 F2 F4 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (124)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:90:y:2013:i:1:p:65-74

DOI: 10.1016/j.jinteco.2012.11.002

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