firm survival, resource-based theory, hazard rates, manufacturing, technological opportunity., C41, L1, L26, L60,

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Process innovations, Total factor productivity, Stochastic dominance, Non-parametric tests, Firm size, C12, C14, D2, D24, L6, O3, L26,

The trade literature has long discussed the existence of some benefits attributed to exporting (learning-by-exporting), among others, the improvement in survival chances. This paper examines whether exporting SMEs enjoy better survival prospects than non-exporting SMEs. We investigate the determinants of survival of exporting and non-exporting SMEs and explore whether the exporting behaviour plays a significant role in explaining their probability of exit. For this purpose, we estimate discrete time proportional hazard models that account for unobserved individual heterogeneity. The dataset is a sample of Spanish manufacturing SMEs drawn from the Encuesta sobre Estrategias Empresariales (ESEE) for 1990-2002. After controlling for firm, industry and economy characteristics, we find evidence supporting the existence of a sizeable ''surviving-by-exporting'' effect. That is, exporting SMEs face a significantly lower probability of failure than non-exporters.