Importing after exporting
Date
2015-07
Authors
Albornoz, Facundo
García Lembergman, Ezequiel
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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.
Fil: García Lembergman, Ezequiel. Universidad de San Andrés. Departamento de Economía; Argentina.