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Old Firms and New Export Flows: Does Experience Increase Survival?

Author

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  • Martina Lawless

    (Economic and Social Research Institute)

  • Zuzanna Studnicka

    (University College Dublin)

Abstract

In this paper we present new empirical evidence on the relationship between exporting experience and the duration of exports at the firm-product-destination level. We find that the direct effect of experience on export flow survival is negative. However, when we include interactions between experience and firm export diversification measures, this effect becomes positive. This suggests that more experienced firms launch more risky export flows which increases the probability of failure of any individual product-destination pairing.

Suggested Citation

  • Martina Lawless & Zuzanna Studnicka, 2024. "Old Firms and New Export Flows: Does Experience Increase Survival?," Open Economies Review, Springer, vol. 35(2), pages 215-243, April.
    • Handle: RePEc:kap:openec:v:35:y:2024:i:2:d:10.1007_s11079-023-09727-4
    DOI: 10.1007/s11079-023-09727-4
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    Cited by:

    1. Albornoz, Facundo & Calvo Pardo, Héctor F. & Corcos, Gregory & Ornelas, Emanuel, 2023. "Sequentially exporting products across countries," Journal of International Economics, Elsevier, vol. 142(C).
    2. Facundo Albornoz & Héctor F. Calvo Pardo & Gregory Corcos & Emanuel Ornelas, 2021. "Sequential Exporting across Countries and Products," CESifo Working Paper Series 9119, CESifo.
    3. Martina Lawless & Zuzanna Studnicka, 2019. "Products or Markets: What Type of Experience Matters for Export Survival?," Working Papers 201923, School of Economics, University College Dublin.
    4. Hamilton, Ben, 2023. "Learning, externalities, and export dynamics: Evidence from Chilean exporters," Research in Economics, Elsevier, vol. 77(4), pages 497-517.
    5. Martina Lawless & Zuzanna Studnicka, 2024. "Products or markets: What type of experience matters for export survival?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 160(1), pages 75-98, February.

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    More about this item

    Keywords

    Duration of trade; Survival models; Export experience; Multi-product firms;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General

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