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Export Survival in Global Value Chains

Author

Listed:
  • David Córcoles

    (University of Castilla-La Mancha)

  • Carmen Díaz-Mora

    (University of Castilla-La Mancha)

  • Rosario Gandoy

    (University of Castilla-La Mancha)

Abstract

This paper focuses on the survival capacity of the trade flows in international production networks, extending the limited empirical evidence. Firstly, we emphasize that these trade relationships are longer-lived than trade in final goods. Secondly, we try to delimit the factors that explain this. Using time-discrete duration models, which control for the existence of unobservable heterogeneity, we find that variables such as initial value of the trade flow, geographic and product diversification, institutional quality, geographic and linguistic proximity and membership in a regional integration agreement play an important role for stability of global production systems. Our results highlight that the high sunk entry costs and the need for trust and reliability in global value chains are factors dissuading radical alterations in the network configuration.

Suggested Citation

  • David Córcoles & Carmen Díaz-Mora & Rosario Gandoy, 2012. "Export Survival in Global Value Chains," Working Papers 12-03, Asociación Española de Economía y Finanzas Internacionales.
    • Handle: RePEc:aee:wpaper:1203
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    References listed on IDEAS

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    Cited by:

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    2. Innwon Park & Soonchan Park, 2017. "Formation of interdependent regional trade agreements and production networks," The World Economy, Wiley Blackwell, vol. 40(10), pages 2032-2055, October.
    3. Türkcan, Kemal, 2016. "On the role of vertical differentiation in enhancing survival of export flows: Evidence from a developing country," MPRA Paper 71023, University Library of Munich, Germany.

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    More about this item

    Keywords

    International Production Networks; Export Survival; Time-Discrete Duration Models;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies

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