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Old Firms and New Export Flows: Does Experience Increase Survival?
Author(s)
Date Issued
2019-09
Date Available
2019-09-26T11:22:57Z
Abstract
In this paper we present new empirical evidence on the relationship between exporting experience and the duration of export relationships at the firm-product-destination level. Our starting hypothesis that more experienced exporters would have longer lived product-market trade relationships is quite strongly rejected in baseline specifications. However,we find that when we introduce interaction effects between experience and product scope and also between experience and similarity to the firm's core export product, our results change considerably. These findings suggest that at some level of experience as an exporter there is a decline in the marginal return on the positive effects on survival of product diversification and proximity. We suggest that this is evidence that more experienced firms launch product-destination pairs further away from their core competence and/or into more risky markets which therefore increases the risk of failure of any individual product-destination pairing.
Type of Material
Working Paper
Publisher
University College Dublin. School of Economics
Start Page
1
End Page
31
Series
UCD Centre for Economic Research Working Paper Series
WP2019/19
Copyright (Published Version)
2019 the Authors
Classification
F10
Language
English
Status of Item
Not peer reviewed
This item is made available under a Creative Commons License
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