Small, young, and exporters: New evidence on the determinants of firm growth

Marco Grazzi and Daniele Moschella ()

Journal of Evolutionary Economics, 2018, vol. 28, issue 1, No 6, 125-152

Abstract: Abstract This work investigates how the export status of the firm influences the patterns of employment growth at different age classes. We address this research question resorting to a novel set of data that links together the universe of Italian firms and detailed data on export transactions. We find that the positive relationship between export status and growth declines with firm age. Further, we also find that, even when accounting for the role of age, the negative size-growth relationship does not disappear, contrary to some recent evidence. These results suggest a positive signaling role of the export status that is stronger for young exporters or born globals. Exploiting the product-country level dimension of the customs data, we also provide, for the first time, evidence on differences in exchange rates pass-through between young and experienced exporters. In particular, we find that early exporters appear to be better equipped than established firms to face exchange rates variations as their exports decrease less following a currency appreciation.

Keywords: Firm age and performance; Firm growth; International trade; Born global; Exchange rates pass-through (search for similar items in EconPapers)
JEL-codes: D22 F14 L25 L26 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (26)

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Working Paper: Small, young, and exporters: New evidence on the determinants of firm growth (2016)
Working Paper: Small, young, and exporters: New evidence on the determinants of firm growth (2016)
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DOI: 10.1007/s00191-017-0523-7

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