Skip to Main content Skip to Navigation
Journal articles

Learning to Export and the Timing of Entry to Export Markets

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.
Complete list of metadata
Contributor : Elisabeth Lhuillier Connect in order to contact the contributor
Submitted on : Wednesday, February 22, 2017 - 4:16:52 PM
Last modification on : Thursday, November 4, 2021 - 11:58:07 AM

Links full text




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



Record views