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How Exporters Grow

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Author(s)
Fitzgerald, Doireann 
Haller, Stefanie 
Yedid-Levi, Yaniv 
Uri
http://hdl.handle.net/10197/8363
Date Issued
January 2017
Date Available
20T12:22:46Z February 2017
Abstract
We document how export quantities and prices evolve after entry to a market. Controlling for marginal cost, and taking account of selection on idiosyncratic demand, there are economically and statistically significant dynamics of quantities, but no dynamics of prices. To match these facts, we estimate a model where firms invest in customer base through non-price actions (e.g. marketing and advertising), and learn gradually about their idiosyncratic demand. The model matches quantity, price and exit moments. Parameter estimates imply costs of adjusting investment in customer base, and slow learning about demand, both of which generate sluggish responses of sales to shocks.
Type of Material
Working Paper
Publisher
University College Dublin. School of Economics
Start Page
1
End Page
42
Series
UCD Centre for Economic Research Working Paper Series
WP2017/02
Copyright (Published Version)
2017 the authors
Keywords
  • Exporter dynamics

  • Customer base

  • Learning

Classification
F1
L11
Language
English
Status of Item
Not peer reviewed
This item is made available under a Creative Commons License
https://creativecommons.org/licenses/by-nc-nd/3.0/ie/
Owning collection
Economics Working Papers & Policy Papers
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1540
Acquisition Date
Feb 6, 2023
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Acquisition Date
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