The Role of Experience in Export Market Entry: Evidence for UK Firms

University of Nottingham Research Paper No. 2006/48

37 Pages Posted: 17 Dec 2006

See all articles by Richard Kneller

Richard Kneller

University of Nottingham

Mauro Pisu

Leverhulme Centre for Research on Globalisation and Economic Policy; National Bank of Belgium; OECD

Date Written: 2006

Abstract

The recent literature on firm exporting behaviour has pointed out to sunk-cost as key determinant of export behaviour yet little insight into what they include or how they vary with experience. In this paper we provide fresh evidence on the barriers to exporting and the role of export experience and other firm-level characteristics. Our results indicate that experience matters but in a non-linear manner. The sunk-costs of exporting initially rise with experience. Overall; these results suggest the existence of a process of learning by doing whereby firms learn how to cope with export barriers through direct experience in export markets.

Keywords: exports experience, exports barriers, productivity, sunk costs

JEL Classification: D21, F14

Suggested Citation

Kneller, Richard and Pisu, Mauro, The Role of Experience in Export Market Entry: Evidence for UK Firms (2006). University of Nottingham Research Paper No. 2006/48, Available at SSRN: https://ssrn.com/abstract=951982 or http://dx.doi.org/10.2139/ssrn.951982

Richard Kneller (Contact Author)

University of Nottingham ( email )

University Park
Nottingham, NG8 1BB
United Kingdom

Mauro Pisu

Leverhulme Centre for Research on Globalisation and Economic Policy ( email )

University of Nottingham
School of Economics
Nottingham, NG7 2RD
United Kingdom

National Bank of Belgium ( email )

Research Department
Boulevard de Berlaimont 14
Brussels, 1000
Belgium

OECD ( email )

2 rue Andre Pascal
Paris Cedex 16, 75775
France

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