Learning, externalities, and export dynamics: Evidence from Chilean exporters

Ben Hamilton

Research in Economics, 2023, vol. 77, issue 4, 497-517

Abstract: This paper presents a model of exporting with demand uncertainty where incumbents reveal signals about a shared component of demand that potential entrants use to update beliefs. Using Chilean export data, signals are estimated and used to examine the effects of information on entry into new markets, quantity of output sold, and duration of exporting. A one-standard-deviation-increase in signals by incumbents is associated with 6.3% higher entry rates, 11.7% larger first-year export volumes, and 0.6% longer duration. Information spillovers are larger in distant countries, in countries where Spanish is not an official language, for homogeneous products, and for larger firms.

Keywords: Uncertainty; Learning about demand; Export dynamics; Externalities (search for similar items in EconPapers)
JEL-codes: D83 F14 L15 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reecon:v:77:y:2023:i:4:p:497-517

DOI: 10.1016/j.rie.2023.09.002

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