Export Market Participation with Sunk Costs and Firm Heterogeneity
Author | : Evis Sinani |
Publisher | : |
Total Pages | : |
Release | : 2008 |
ISBN-10 | : OCLC:1129719552 |
ISBN-13 | : |
Rating | : 4/5 (52 Downloads) |
Download or read book Export Market Participation with Sunk Costs and Firm Heterogeneity written by Evis Sinani and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: 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