Export market participation with sunk costs and firm heterogeneity

Abstract: In this paper we investigate the importance of sunk costs, firm characteristics and spillovers from nearby exporters on a firm’s decision to participate in exporting. The empirical analysis involves the estimation of a non-structural, discrete choice, dynamic model with firm heterogeneity. By using panel data for Estonian companies from 1994 to 1999 we find that: (i) both sunk costs and observable firm characteristics are important determinants of export market participation; (ii) previous history matters, in that, if a firm has been exporting the previous period or the period before, it significantly increases the likelihood of the firm exporting in the current period; (iii) larger firms with high capital intensity and foreign ownership are more likely to be exporters; (iv) operating in an export-oriented industry increases a firm’s likelihood of exporting

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• Location: Deutsche Nationalbibliothek Frankfurt am Main
• Extent: Online-Ressource
• Language: Englisch
• Notes: Postprint ; begutachtet (peer reviewed) ; In: Applied Economics ; 42 (2008) 25 ; 3195-3207

Classification and Topics

• Classification: Handel, Kommunikation, Verkehr

Contributors, Places and Time

• Event: Veröffentlichung
• (where): Mannheim
• (when): 2008
• Creator: Sinani, Evis ; Hobdari, Bersant

Further information

• DOI: 10.1080/00036840802112372
• URN: urn:nbn:de:0168-ssoar-242179
• Rights: Open Access unbekannt; Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.