The Life-Cycle Dynamics of Exporters and Multinational Firms

60 Pages Posted: 13 Nov 2017 Last revised: 11 Feb 2024

See all articles by Anna Gumpert

Anna Gumpert

University of Tübingen - Faculty of Economics and Social Sciences; Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute)

Andreas Moxnes

University of Oslo - Department of Economics; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Natalia Ramondo

University of California, San Diego (UCSD) - Graduate School of International Relations and Pacific Studies (IRPS)

Felix Tintelnot

University of Chicago Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: November 2017

Abstract

This paper studies the life-cycle dynamics of exporters and multinational enterprises (MNEs). Using rich firm-level data, we document a comprehensive set of facts on entry, exit, and growth of new exporters and new MNEs. Guided by these facts, we build a model based on the standard proximity-concentration trade-off extended to incorporate time-varying firm productivity and sunk costs of MNE entry. The calibrated version of the model goes far in matching cross-sectional and dynamic moments of the data on exporters and MNEs. We show that including the choice to become an MNE affects the predicted export dynamics after trade liberalization. The different dynamics in a model with and without MNEs hinge on the right truncation of fast-growing exporters induced by the inclusion of the MNE choice.

Suggested Citation

Gumpert, Anna and Moxnes, Andreas and Ramondo, Natalia and Tintelnot, Felix, The Life-Cycle Dynamics of Exporters and Multinational Firms (November 2017). NBER Working Paper No. w24013, Available at SSRN: https://ssrn.com/abstract=3070037

Anna Gumpert (Contact Author)

University of Tübingen - Faculty of Economics and Social Sciences ( email )

Mohlstrasse 36
Tuebingen, Baden-Wuerttemberg 72074
Germany

Centre for Economic Policy Research (CEPR) ( email )

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United Kingdom

CESifo (Center for Economic Studies and Ifo Institute) ( email )

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Germany

Andreas Moxnes

University of Oslo - Department of Economics ( email )

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N-0317 Oslo
Norway

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

National Bureau of Economic Research (NBER) ( email )

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Natalia Ramondo

University of California, San Diego (UCSD) - Graduate School of International Relations and Pacific Studies (IRPS) ( email )

9500 Gilman Drive
La Jolla, CA 92093-0519
United States

Felix Tintelnot

University of Chicago Department of Economics ( email )

1101 East 58th Street
Chicago, IL 60637
United States

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