Importing after exporting

Date
2015-07
Authors
Albornoz, Facundo
García Lembergman, Ezequiel
relationships.isContributorOfPublication
Journal Title
Journal ISSN
Volume Title
Publisher
Universidad de San Andrés. Departamento de Economía
Abstract
In this paper, we uncover a novel fact about the relationship between exporting and importing. Using a comprehensive database of Argentine rms, we nd that exporting to a new destination increases the probability of a rm beginning to import from that market within the lapse of one year. We develop a standard model of import behavior and, by testing its predictions, we rule out productivity as an explanation and argue that export entry reduces import xed costs. We show that the e ect is stronger in distant markets and when importing involves non-homogenous and rarely imported goods. Taken together, our results suggest that rms gain knowledge on -or establish links with- potential suppliers after export entry, which reduces the costs associated with searching for import sources.
Description
Fil: Albornoz, Facundo. Universidad de San Andrés. Departamento de Economía; Argentina.
Fil: García Lembergman, Ezequiel. Universidad de San Andrés. Departamento de Economía; Argentina.
Keywords
Citation