The rewards of self-discovery: Learning and firm exporter dynamics

Arbeitspapier

I develop and estimate a model of export dynamics featuring self-discovery that accounts well for new exporter dynamics: (a) continuation rates that are increasing with tenure, and (b) growth rates of export sales that are decreasing with tenure. The option value generated by the acquisition of more information is key to understanding firm dynamics as the discovery stage lasts as long as this option value is positive. I use the model to study the impact of export promotion policies that temporarily subsidize the fixed costs of exporting. These policies can result in long-lived increases in aggregate trade, but their effectiveness crucially depends on the speed of learning.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Papers ; No. 2016-08

Classification and Topics

• Classification: Wirtschaft ; Statistical Simulation Methods: General ; Firm Behavior: Theory ; Firm Behavior: Empirical Analysis ; Search; Learning; Information and Knowledge; Communication; Belief; Unawareness ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation ; Empirical Studies of Trade ; Production, Pricing, and Market Structure; Size Distribution of Firms ; Firm Performance: Size, Diversification, and Scope
• Subject: Learning ; Uncertainty ; Firm dynamics ; Dynamic export supply ; Option value

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Cebreros Zurita, Carlos Alfonso
• Event: Veröffentlichung
• (who): Banco de México
• (where): Ciudad de México
• (when): 2016

Further information

• Handle: http://hdl.handle.net/10419/174438
• Last update: 10.03.2025, 11:42 AM CET