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History Matters for the Export Decision Plant Level Evidence from Turkish Manufacturing Industry

Sule Ozler (), Erol Taymaz () and Kamil Yilmaz ()
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Sule Ozler: Department of Economics, UCLA

No 704, ERC Working Papers from ERC - Economic Research Center, Middle East Technical University

Abstract: In a dynamic panel data framework, we investigate the factors influencing the export decision of the Turkish manufacturing plants over the 1990-2001 period. Our results support the presence of high sunk costs of entry to export markets, as well as the hypothesis that the full history of export participation matters for the current export decision. We further show that the effect of the past export experience on current export decision rapidly depreciates over time: Recent export market participation matters more than the participation further in the past. Finally, we show that while persistence in exporting helps lower the costs of re-entry today, there are diminishing returns to export experience. Our results are robust to plant characteristics (plant size, technology, composition of the employment), the spillovers from the presence of exporters in the same industry, as well as industry and year effects.

Keywords: Export decision; productivity; sunk costs; plant characteristics (search for similar items in EconPapers)
JEL-codes: F14 D21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cwa and nep-int
Date: 2007-03, Revised 2007-03
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http://erc.metu.edu.tr/en/system/files/menu/series07/0704.pdf First version, 2007 (application/pdf)

Related works:
Journal Article: History Matters for the Export Decision: Plant-Level Evidence from Turkish Manufacturing Industry (2009) Downloads
Working Paper: History Matters for the Export Decision: Plant Level Evidence from Turkish Manufacturing Industry (2007) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:met:wpaper:0704

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