Sequential Exporting Across Countries and Products

68 Pages Posted: 14 Jul 2021

See all articles by Facundo Albornoz

Facundo Albornoz

University of Nottingham

Hector F. Calvo Pardo

University of Southampton - Economics Division

Gregory Corcos

Université d'Abomey-Calavi - Ecole Polytechnique

Emanuel Ornelas

Sao Paulo School of Economics

Multiple version iconThere are 3 versions of this paper

Date Written: June 2021

Abstract

How do exporters expand their product scope and geographical presence? We argue that new exporters are uncertain about their profitability in different countries and products, but learn it as they start to export. As a consequence, exporters add products and countries sequentially, in an interdependent process. Exploiting disaggregated data on French exporters, we find empirical support consistent with such a mechanism, where firms learn from their initial export experiences and then adjust their sales, number of products and destination countries accordingly. Our results indicate that part of the learning is firm-specific, and not merely product- or market-specific. Furthermore, we find that firms tend to expand in the sub-extensive margin first by widening product scope within a destination and later by entering new destinations; and that firms' core products are particularly resilient despite being used to "test the waters" when entering additional countries.

JEL Classification: D22, F10, F14, L25

Suggested Citation

Albornoz, Facundo and Calvo Pardo, Hector F. and Corcos, Gregory and Ornelas, Emanuel, Sequential Exporting Across Countries and Products (June 2021). CEPR Discussion Paper No. DP16208, Available at SSRN: https://ssrn.com/abstract=3886650

Facundo Albornoz (Contact Author)

University of Nottingham ( email )

University Park
Nottingham, NG8 1BB
United Kingdom

Hector F. Calvo Pardo

University of Southampton - Economics Division ( email )

University Rd.
Southampton SO17 1BJ, Hampshire SO17 1LP
United Kingdom
+442380595051 (Phone)
+442380593858 (Fax)

Gregory Corcos

Université d'Abomey-Calavi - Ecole Polytechnique

Cotonou
Benin

Emanuel Ornelas

Sao Paulo School of Economics ( email )

Rua Itapeva 474 s.1202
São Paulo, São Paulo 01332-000
Brazil

HOME PAGE: http://https://sites.google.com/site/emanuelornelaseo/

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