Exporter Behavior, Country Size and Stage of Development: Evidence from the Exporter Dynamics Database

50 Pages Posted: 20 Apr 2016 Last revised: 30 Apr 2018

See all articles by Ana M. Fernandes

Ana M. Fernandes

World Bank - International Trade Division; World Bank

Caroline Freund

Peter G. Peterson Institute for International Economics

Martha Denisse Pierola

World Bank - Development Research Group (DECRG)

Date Written: October 21, 2015

Abstract

This paper presents new data on the micro structure of the export sector for 45 countries and studies how exporter behavior varies with country size and stage of development. Larger countries and more developed countries have more exporters, larger exporters, and a greater share of exports controlled by the top 5 percent. The extensive margin (more firms) plays a greater role than the intensive margin (average size) in supporting exports of larger countries. In contrast, the intensive margin is relatively more important in explaining the exports of richer countries. Exporter entry and exit rates are higher and entrant survival is lower at an early stage of development. The paper discusses the results in light of trade theories with heterogeneous firms and the empirical literature on resource allocation, firm size, and development. An implication from the findings is that developing countries export less because the top of the firm-size distribution is truncated.

Keywords: International Trade and Trade Rules, Access to Finance, Food & Beverage Industry, Common Carriers Industry, Construction Industry, Business Cycles and Stabilization Policies, General Manufacturing, Plastics & Rubber Industry, Textiles, Apparel & Leather Industry, Pulp & Paper Industry, Trade and Services, Rural Labor Markets, Labor Markets

Suggested Citation

Fernandes, Ana Margarida and Freund, Caroline and Pierola, Martha Denisse, Exporter Behavior, Country Size and Stage of Development: Evidence from the Exporter Dynamics Database (October 21, 2015). World Bank Policy Research Working Paper No. 7452. Available at SSRN: https://ssrn.com/abstract=2677465

Ana Margarida Fernandes (Contact Author)

World Bank - International Trade Division

1818 H Street, N.W.
Washington, DC 20433
United States

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

HOME PAGE: http://econ.worldbank.org/staff/afernandes

Caroline Freund

Peter G. Peterson Institute for International Economics ( email )

1750 Massachusetts Avenue, NW
Washington, DC 20036
United States

Martha Denisse Pierola

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street N.W.
MSN3-311
Washington, DC 20433
United States

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