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Occasional and perennial exporters

Author

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  • Blum, Bernardo S.
  • Claro, Sebastian
  • Horstmann, Ignatius J.

Abstract

We document several new features of firms' export entry and exit behaviors: i) one-third of exporting firms enter into and exit from exporting multiple times; ii) most continuing exporters enter and exit specific export destinations multiple times; iii) firms re-entering exporting often sell the same product(s) to the same importer(s). We provide a model in which this behavior is an optimal response for firms facing increasing costs and stochastic demand. The model has a number of predictions that do not come out of models of trade in which firms have constant marginal cost. Our data strongly support these predictions.

Suggested Citation

  • Blum, Bernardo S. & Claro, Sebastian & Horstmann, Ignatius J., 2013. "Occasional and perennial exporters," Journal of International Economics, Elsevier, vol. 90(1), pages 65-74.
    • Handle: RePEc:eee:inecon:v:90:y:2013:i:1:p:65-74
    DOI: 10.1016/j.jinteco.2012.11.002
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    More about this item

    Keywords

    Export decision; Capacity constraints; Specific factor firm-level trade model;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

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