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Survival is for the fittest: export survival patterns in Georgia

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  • Martuscelli,Antonio
  • Varela,Gonzalo J.

Abstract

This paper analyzes the determinants of export flow survival in Georgia. The paper uses a unique Georgian firm-level data set, in which firms'characteristics and output dynamics are matched with their customs'export transactions, for the period 2006-12. A discrete survival model is used to explore the role of firm level characteristics, diversification strategies, and network effects on the survival rates of export flows. Low survival rates at the product level are found to limit the ability of Georgian firms to consolidate new products in international markets. The analysis finds that it is production efficiency, rather than size, that boosts export survival chances, that firms’ diversification strategies matter for the prospects of survival, and that there is strong evidence of network effects in export survival. The analysis also finds that ratified foreign trade agreements contribute to increase the survival of export flows by reducing policy-induced trading costs and increasing information about destination markets.

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  • Martuscelli,Antonio & Varela,Gonzalo J., 2015. "Survival is for the fittest: export survival patterns in Georgia," Policy Research Working Paper Series 7161, The World Bank.
    • Handle: RePEc:wbk:wbrwps:7161
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    Cited by:

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    2. Silva, Thiago Christiano & Valença, Paulo Ricardo Mendes & Tabak, Benjamin Miranda, 2024. "Economic performance of exporting sectors: Evidence for manufacturing in Brazil," Economic Systems, Elsevier, vol. 48(2).
    3. Luis Felipe Beltrán Morales, 2022. "Impact of the COVID-19 Pandemic on Export Survival from Latin American Countries," Sustainability, MDPI, vol. 14(14), pages 1-16, July.
    4. Kwabena Nkansah & Paul Owusu Takyi & Daniel Sakyi & Frank Adusah-Poku, 2022. "Economic Integration Agreements and Export Survival in Ghana," Journal of African Trade, Springer, vol. 9(1), pages 1-22, December.
    5. Joachim Wagner, 2016. "A survey of empirical studies using transaction level data on exports and imports," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(1), pages 215-225, February.
    6. MAJUNE, Socrates, 2015. "A discrete time analysis of export duration in Kenya: 1995 -2014," MPRA Paper 68727, University Library of Munich, Germany.
    7. Stirbat, Liviu & Record, Richard & Nghardsaysone, Konesawang, 2015. "The Experience of Survival: Determinants of Export Survival in Lao PDR," World Development, Elsevier, vol. 76(C), pages 82-94.
    8. Margalida Murillo & Cindy Paola Leal, 2021. "Tratados de Libre Comercio y duración de las exportaciones: Evidencia a nivel de firma para Colombia," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, vol. 88(6), pages 201-238, July.

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    More about this item

    Keywords

    Economic Theory&Research; Debt Markets; Microfinance; Markets and Market Access; Small Scale Enterprises;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies

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