Information externalities and export duration at the firm level

Ricardo Arguello, Andres Garcia-Suaza and Daniel Valderrama-Gonzalez

No 11035, Documentos de Trabajo from Universidad del Rosario

Abstract: Abstract: Recent empirical work emphasizes the importance of the extensive margin of trade (new exporters, new export activities) for long run export growth. In this context, understanding the determinants of duration of new exporters is key for underpinning the dynamics of exports growth. As new exporters tend to show low survival rates, identifying the determinants of export duration is highly relevant for academic and policy purposes. In this paper, we explore whether information externalities arising from different levels of spatial interaction allow new exporters to increase the duration of their trade activities. For this, we use transaction level data on Colombian exports between 2004 and 2011. Results show that export networks, understood as the agglomeration of exporting firms at different spatial levels, reduce the risk of dropping out from exporting and that this effect is stronger the more similar are export activities carried out by firms.

Keywords: Information externalities; export duration; export dynamics; duration analysis; survival of trade (search for similar items in EconPapers)
JEL-codes: C41 F14 (search for similar items in EconPapers)
Pages: 48
Date: 2013-11-01
New Economics Papers: this item is included in nep-int and nep-ure
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:col:000092:011035

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