Firms’ export decisions: self-selection versus trial-and-error
In this paper, a conceptual theoretical model is developed to better integrate various dimensions of the firms’ decision to export. The model sheds light on the affirmations of the founding models of the ‘new theory of international trade’, in particular the role of productivity and sunk costs of ex...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
De Gruyter
2020-12-01
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| Series: | Economics: Journal Articles |
| Subjects: | |
| Online Access: | https://doi.org/10.5018/economics-ejournal.ja.2020-22 |
| _version_ | 1817967926639067136 |
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| author | Movahedi Mohammad Shahbazi Kiumars |
| author_facet | Movahedi Mohammad Shahbazi Kiumars |
| author_sort | Movahedi Mohammad |
| collection | DOAJ |
| description | In this paper, a conceptual theoretical model is developed to better integrate various dimensions of the firms’ decision to export. The model sheds light on the affirmations of the founding models of the ‘new theory of international trade’, in particular the role of productivity and sunk costs of exporting in the firms’ export decision. It also takes into account two stylized facts that seem difficult to be reconciled with the implications of the founding models: 1) many domestic firms, regardless of their productivity level, enter foreign markets every year with little sales and cease all exporting activities in less than a year; 2) several of high-productivity firms choose to only serve their domestic market. |
| first_indexed | 2024-04-13T11:48:27Z |
| format | Article |
| id | doaj.art-7c36ee7dc40240af86a857ce1ae7a904 |
| institution | Directory Open Access Journal |
| issn | 1864-6042 |
| language | English |
| last_indexed | 2024-04-13T11:48:27Z |
| publishDate | 2020-12-01 |
| publisher | De Gruyter |
| record_format | Article |
| series | Economics: Journal Articles |
| spelling | doaj.art-7c36ee7dc40240af86a857ce1ae7a9042022-12-22T02:48:06ZengDe GruyterEconomics: Journal Articles1864-60422020-12-0114110.5018/economics-ejournal.ja.2020-22Firms’ export decisions: self-selection versus trial-and-errorMovahedi Mohammad0Shahbazi Kiumars1Center for Research in Economics and Management (CREM), University of Caen Normandy, FranceFaculty of Economics and Management, Urmia University, IranIn this paper, a conceptual theoretical model is developed to better integrate various dimensions of the firms’ decision to export. The model sheds light on the affirmations of the founding models of the ‘new theory of international trade’, in particular the role of productivity and sunk costs of exporting in the firms’ export decision. It also takes into account two stylized facts that seem difficult to be reconciled with the implications of the founding models: 1) many domestic firms, regardless of their productivity level, enter foreign markets every year with little sales and cease all exporting activities in less than a year; 2) several of high-productivity firms choose to only serve their domestic market.https://doi.org/10.5018/economics-ejournal.ja.2020-22firm heterogeneityself-selectionsunk cost of exportingf10 |
| spellingShingle | Movahedi Mohammad Shahbazi Kiumars Firms’ export decisions: self-selection versus trial-and-error Economics: Journal Articles firm heterogeneity self-selection sunk cost of exporting f10 |
| title | Firms’ export decisions: self-selection versus trial-and-error |
| title_full | Firms’ export decisions: self-selection versus trial-and-error |
| title_fullStr | Firms’ export decisions: self-selection versus trial-and-error |
| title_full_unstemmed | Firms’ export decisions: self-selection versus trial-and-error |
| title_short | Firms’ export decisions: self-selection versus trial-and-error |
| title_sort | firms export decisions self selection versus trial and error |
| topic | firm heterogeneity self-selection sunk cost of exporting f10 |
| url | https://doi.org/10.5018/economics-ejournal.ja.2020-22 |
| work_keys_str_mv | AT movahedimohammad firmsexportdecisionsselfselectionversustrialanderror AT shahbazikiumars firmsexportdecisionsselfselectionversustrialanderror |