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Learning and the Dynamics of Exporting: Theory and Evidence from French Firms

Ines Buono (), Harald Fadinger and Romain Aeberhardt

No 606, 2009 Meeting Papers from Society for Economic Dynamics

Abstract: of exporting behavior. In addition - and differently from a standard sunk cost model - the model predicts more persistence of exporting behavior in markets with better legal institutions and for more productive exporters. We test these and other predictions on French firm level export data that include information on the destinations of individual firms’ exports and find strong evidence in favor of our model.

Date: 2009
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