Learning to Export and the Timing of Entry to Export Markets - Archive ouverte HAL Access content directly
Journal Articles Review of International Economics Year : 2014

Learning to Export and the Timing of Entry to Export Markets

(1)
1

Abstract

Exporters normally enter their first foreign markets some time after beginning to sell locally, then enter subsequent markets progressively. Standard trade models are essentially static and do not explain these elementary facts about exporting, which can bias the estimation of trade patterns. This paper proposes a model that endogenously generates the timing of entry to new export markets. The timing results from a learning mechanism. More productive firms are less sensitive to the learning effect and therefore (1) enter markets more quickly and (2) enter larger markets earlier and smaller markets later. These predictions are confirmed using Swedish firm-level data.

Dates and versions

hal-01474269 , version 1 (22-02-2017)

Identifiers

Cite

Nicholas Sheard. Learning to Export and the Timing of Entry to Export Markets. Review of International Economics, 2014, 22 (3), pp.536--560. ⟨10.1111/roie.12132⟩. ⟨hal-01474269⟩
52 View
0 Download

Altmetric

Share

Gmail Facebook Twitter LinkedIn More