Survival in export markets

dc.creator.AutorAlbornoz, Facundo
dc.creator.AutorFanelli, Sebastián
dc.creator.AutorHallak, Juan Carlos
dc.date.accessioned2017-02-01T15:40:34Z
dc.date.available2017-02-01T15:40:34Z
dc.date.issued2014-08
dc.descriptionFil: Albornoz, Facundo. Universidad de San Andrés. Departamento de Economía; Argentina.
dc.descriptionFil: Fanelli, Sebastián. Universidad de San Andrés. Departamento de Economía; Argentina.
dc.descriptionFil: Hallak, Juan Carlos. Universidad de San Andrés. Departamento de Economía; Argentina.
dc.description.abstractThis paper explores the determinants of rm survival in export markets. Our theoretical framework includes a geometric Brownian motion for rm pro tability, market-speci c sunk and xed exporting costs that are common across rms, and rm- and market-speci c pro tability shifters that are constant over time. We derive the probability of survival upon entry in an export market. We show that this probability increases with the ratio of sunk to xed costs and is insensitive to the pro tability shifters. Also, we show that the survival probability is una ected by xed costs if sunk costs are zero. Combining our theoretical results with observed patterns of survival among Argentine exporters, we infer the impact of distance and experience on the magnitude of sunk and xed costs. In our data set, survival rates upon entry decrease with distance and increase with experience. Hence, we infer that xed costs increase more with distance than sunk cost while xed costs fall with experience su ciently strongly to dominate the fall in sunk costs. These results carry implications on parametrizations of theoretical models of export dynamics and serve as a benchmark to assess structural estimates of xed and sunk costs.
dc.formatapplication/pdf
dc.identifier.urihttp://hdl.handle.net/10908/11949
dc.languageeng
dc.publisherUniversidad de San Andrés. Departamento de Economía
dc.relation.ispartofseriesDocumento de trabajo (Universidad de San Andrés. Departamento de Economía);112
dc.rightsinfo:eu-repo/semantics/openAccess
dc.rightshttps://creativecommons.org/licenses/by-nc-nd/4.0/
dc.titleSurvival in export markets
dc.typeDocumento de Trabajo
dc.typeinfo:eu-repo/semantics/workingPaper
dc.typeinfo:ar-repo/semantics/documento de trabajo
dc.typeinfo:eu-repo/semantics/draft
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