Products or markets: What type of experience matters for export survival?

Martina Lawless and Zuzanna Studnicka ()
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Zuzanna Studnicka: University College Dublin

Review of World Economics (Weltwirtschaftliches Archiv), 2024, vol. 160, issue 1, No 3, 75-98

Abstract: Abstract Previous research has generally shown that increased export experience is positively correlated with the subsequent survival of newly launched export flows by a firm. In this paper, we find that there are important differences in the relationship between firm experience and export survival depending on the source of the experience. Specifically, experience built up by a firm from previously exporting a particular product before launching it in a new market is positively associated with the survival of a new product-market flow. In contrast, experience within a market prior to adding a new product has a mainly negative correlation with the survival probability of the new product-market export flow. This shows that taking a successful product to new markets is more likely to succeed than expanding product range within a market. We further find evidence suggestive of firms bringing their most established products to a wider range of markets while launching new product lines in their more established markets.

Keywords: Duration of trade; Firm survival; Export experience; Multi-product firms (search for similar items in EconPapers)
JEL-codes: F10 (search for similar items in EconPapers)
Date: 2024
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Working Paper: Products or Markets: What Type of Experience Matters for Export Survival? (2019)
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DOI: 10.1007/s10290-023-00507-3

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