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Exporter dynamics and partial-year effects

Author

Listed:
  • Andrew B. Bernard
  • Renzo Massari
  • Jose-Daniel Reyes
  • Daria Taglioni

Abstract

Two identical firms that start exporting in different months, one each in January and December, will report dramatically different exports for the first calendar year. This partial-year effect biases down first year export levels and biases up first year export growth rates. For Peruvian exporters, the partial-year bias is large: first-year export levels are understated by 65 percent and the first year growth rate is overstated by 112 percentage points. Correcting the partial-year effect eliminates high first year export growth rates, raises initial export levels and almost doubles the contribution of net firm entry and exit to overall export growth.

Suggested Citation

  • Andrew B. Bernard & Renzo Massari & Jose-Daniel Reyes & Daria Taglioni, 2016. "Exporter dynamics and partial-year effects," CEP Discussion Papers dp1430, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp1430
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    Keywords

    export entry; export growth; margins of trade; heterogeneous firms;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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