Occasional and perennial exporters

Bernardo S. Blum*, Sebastian Claro, Ignatius J. Horstmann

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

58 Scopus citations

Abstract

We document several new features of firms' export entry and exit behaviors: i) one-third of exporting firms enter into and exit from exporting multiple times; ii) most continuing exporters enter and exit specific export destinations multiple times; iii) firms re-entering exporting often sell the same product(s) to the same importer(s). We provide a model in which this behavior is an optimal response for firms facing increasing costs and stochastic demand. The model has a number of predictions that do not come out of models of trade in which firms have constant marginal cost. Our data strongly support these predictions.

Original languageEnglish
Pages (from-to)65-74
Number of pages10
JournalJournal of International Economics
Volume90
Issue number1
DOIs
StatePublished - 2013
Externally publishedYes

Keywords

  • Capacity constraints
  • Export decision
  • Specific factor firm-level trade model

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