Firms' Export Dynamics: Experience Versus Size

29 Pages Posted: 15 Jul 2015

See all articles by Antoine Berthou

Antoine Berthou

Université Paris I Panthéon-Sorbonne - Centre Maison des Sciences Economiques; Paris School of Economics (PSE)

Vincent Vicard

Centre d'Etudes Prospectives et d'Info. Internationales (CEPII)

Date Written: July 2015

Abstract

This paper provides evidence about the impact that size and experience in exporting have on firms' dynamics, a critical input in models of firms dynamics. The analysis uses a census of French exports by firm‐destination‐product over the period 1994–2008 with a monthly frequency. We first uncover a large calendar year effect associated with the timing of entry: the fact new exporters may start exporting late during the year inflates the growth rate between the first and second years. When computed on a full year basis starting with the month of entry, first year exports of new exporters are on average 36 per cent larger than on a calendar year basis. We then show that, controlling for size, export experience is negatively related to net growth of exports for surviving exporters. Controlling for export experience, the relationship between average size and net growth of exports shows no systematic pattern. Finally, churning in foreign markets, that is the gross contributions of entry and exit to exporters net growth, is decreasing with export experience and (sharply) with size.

Suggested Citation

Berthou, Antoine and Vicard, Vincent, Firms' Export Dynamics: Experience Versus Size (July 2015). The World Economy, Vol. 38, Issue 7, pp. 1130-1158, 2015, Available at SSRN: https://ssrn.com/abstract=2630851 or http://dx.doi.org/10.1111/twec.12221

Antoine Berthou (Contact Author)

Université Paris I Panthéon-Sorbonne - Centre Maison des Sciences Economiques ( email )

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Paris School of Economics (PSE) ( email )

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Vincent Vicard

Centre d'Etudes Prospectives et d'Info. Internationales (CEPII) ( email )

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Paris Cedex 07, F-75334
France

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