Learning and the Dynamics of Exporting: Theory and Evidence from French Firms
Ines Buono (),
Harald Fadinger and
No 606, 2009 Meeting Papers from Society for Economic Dynamics
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.
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