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What determines export survival to the US market? An analysis of the impact of product quality and sophistication

Author

Listed:
  • Viola Lamani

    (UMR ART-Dev - Acteurs, Ressources et Territoires dans le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - CNRS - Centre National de la Recherche Scientifique - UM - Université de Montpellier, UPVM - Université Paul-Valéry - Montpellier 3)

  • Pauline Lectard

    (UMR ART-Dev - Acteurs, Ressources et Territoires dans le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - CNRS - Centre National de la Recherche Scientifique - UM - Université de Montpellier, UM - Université de Montpellier)

Abstract

Using product-level data at the six-digit level of the HS classification, we examine the impact of product characteristics, namely quality and sophistication on the survival of exports to the United States over the period 1995-2017. Unlike previous studies, we derive econometrically a measure of product quality based on Khandelwal, Schott and Wei (2013)'s approach and show that exporting higher quality goods decreases the probability of failure. We also find that exporting highly sophisticated products decreases the probability of leaving the US market. However, if the level of sophistication is abnormally high compared to that of the exporter's average export basket, the negative effect of product sophistication on the probability of failure is reduced. The robustness checks confirm our findings.

Suggested Citation

  • Viola Lamani & Pauline Lectard, 2024. "What determines export survival to the US market? An analysis of the impact of product quality and sophistication," Post-Print halshs-04782308, HAL.
    • Handle: RePEc:hal:journl:halshs-04782308
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