The Life-Cycle Dynamics of Exporters and Multinational Firms

60 Pages Posted: 13 Nov 2017

See all articles by Anna Gumpert

Anna Gumpert

Ludwig Maximilian University of Munich (LMU); CESifo (Center for Economic Studies and Ifo Institute); Centre for Economic Policy Research (CEPR)

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

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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)

Ludwig Maximilian University of Munich (LMU) ( email )

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Germany

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

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Centre for Economic Policy Research (CEPR) ( email )

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Andreas Moxnes

University of Oslo - Department of Economics ( email )

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Norway

Centre for Economic Policy Research (CEPR) ( email )

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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 )

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Felix Tintelnot

University of Chicago Department of Economics ( email )

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Chicago, IL 60637
United States

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