How Exporters Grow

Doireann Fitzgerald, Stephanie Haller and Yaniv Yedid-Levi

No 524, Staff Report from Federal Reserve Bank of Minneapolis

Abstract: We show that after firms enter new export markets, there are striking dynamics of quantities, but no dynamics of prices, controlling for both costs and selection. This points to an important role for demand in the growth of successful exporters, and to a nonprice mechanism through which quantity demanded grows. A model where firms engage in costly investment in customer base through marketing and advertising, and learn about their idiosyncratic demand, can qualitatively match these facts, along with a declining exit hazard. We structurally estimate the model and find that costs of adjusting customer base are key to explaining how exporters grow.

Keywords: Customer base; exporter dynamics; Firm dynamics (search for similar items in EconPapers)
JEL-codes: E20 F10 L10 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2016-01-21
New Economics Papers: this item is included in nep-bec, nep-int, nep-mac and nep-mkt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (30)

Downloads: (external link)
https://www.minneapolisfed.org/research/sr/sr524.pdf Full text (application/pdf)

Related works:
Journal Article: How Exporters Grow (2024)
Working Paper: How Exporters Grow (2020)
Working Paper: How Exporters Grow (2017)
Working Paper: How Exporters Grow (2016)
Working Paper: How Exporters Grow (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedmsr:524

Access Statistics for this paper

More papers in Staff Report from Federal Reserve Bank of Minneapolis Contact information at EDIRC.
Bibliographic data for series maintained by Kate Hansel ().