Export Strategies of New Exporters: Why is Export Expansion Along the Extensive Margins so Sluggish?

LCIOS Discussion Paper No. 277/2011

34 Pages Posted: 19 Mar 2011

See all articles by Jože P. Damijan

Jože P. Damijan

University of Ljubljana, Slovenia - Department of International Economics

Črt Kostevc

University of Ljubljana - Faculty of Economics

Saao Polanec

University of Ljubljana - Faculty of Economics

Date Written: February 11, 2011

Abstract

Recent theoretical models of international trade with heterogeneous firms feature instantaneous adjustment of margins of exports to firm and market characteristics, and equality of distributions of margins of exports between new and incumbent exporters. By using the population of Slovenian firms and their transaction-level trade data we document large differences between these firms that cannot be attributed to the differences in total factor productivity.

This paper contributes to the field by demonstrating that access to financing, measured by equity, debt-to-asset ratio and access to internal credit markets within firm groups, may account for an important part of observed differences in the extensive margins of exports between new and incumbent exporters.

Keywords: exports, multi-product firms, …firm heterogeneity, fi…nancial constraints

JEL Classification: D24, F12, F14

Suggested Citation

Damijan, Joze P. and Kostevc, Crt and Polanec, Saso, Export Strategies of New Exporters: Why is Export Expansion Along the Extensive Margins so Sluggish? (February 11, 2011). LCIOS Discussion Paper No. 277/2011. Available at SSRN: https://ssrn.com/abstract=1786330 or http://dx.doi.org/10.2139/ssrn.1786330

Joze P. Damijan (Contact Author)

University of Ljubljana, Slovenia - Department of International Economics ( email )

Kardeljeva ploscad 17
Ljubljana, 1000
Slovenia
+386 61 189 24 00 (Phone)
+386 61 189 26 98 (Fax)

Crt Kostevc

University of Ljubljana - Faculty of Economics ( email )

Kardeljeva ploscad 17
Ljubljana, 1000
Slovenia

Saso Polanec

University of Ljubljana - Faculty of Economics ( email )

Kardeljeva ploscad 17
Ljubljana, 1000
Slovenia

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