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Sequential Exporting

Hector Calvo Pardo (), Gregory Corcos, Emanuel Ornelas and Facundo Albornoz ()
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Gregory Corcos: NHH, Norway

No 1065, 2010 Meeting Papers from Society for Economic Dynamics

Abstract: Thus, it is the possibility of profitable expansion at both the intensive and extensive margins what makes incurring the sunk costs to enter a single foreign market worthwhile despite the high failure rates. Using a census of Argentinean firm-level manufacturing exports from 2002 to 2007, we find empirical support for several implications of our proposed mechanism, indicating that the practice of “sequential exporting” is pervasive. Sequential exporting has broad but subtle implications for trade policy. For example, a reduction in trade barriers in a country has delayed entry effects in its own market, while also promoting entry in other markets. This trade externality poses challenges for the quantification of the effects of trade liberalization programs, while suggesting neglected but critical implications of international trade agreements.

Date: 2010
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Working Paper: Sequential Exporting (2010) Downloads
Working Paper: Sequential Exporting (2010) Downloads
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