Dynamics of Export Market Entry and Exit

Ilmakunnas, Pekka; Nurmi, Satu

doi:10.2139/ssrn.1047061

Cited by 14 publications

(19 citation statements)

References 42 publications

(22 reference statements)

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“…It also confirms the result of previous studies that plant size has a negative impact on export survival (Ilmakunnas and Nurmi 2010). Meanwhile, medium firms are found to face a hazard rate that is 59 per cent of the hazard faced by small firms.…”

Section: Semi-parametric Resultssupporting

confidence: 89%

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Export survival pattern and its determinants: an empirical study ofChinese manufacturing firms

2014

Asian-Pac Economic Lit

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While empirical studies of export entry have proliferated, less attention has been devoted to the study of export survival in foreign markets. This paper explores the patterns and determinants of export survival using data on Chinese manufacturing firms for the period 1998–2007. The analytical methods used include non‐parametric techniques and the estimation of a discrete‐time duration model. Our results show the high probability of exit of exporters at the start of the period. We also find that large, highly productive and more export‐oriented firms are more likely to export for a longer period. In addition, foreign ownership is found to be an important determinant of export survival, while state ownership increases the risk of export failure.

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Section: Semi-parametric Resultssupporting

confidence: 89%

“…Following the work of Hess and Persson (2012) and Ilmakunnas and Nurmi (2010), we estimate alternative discrete-time duration models, in which the hazard rate is assumed to be of a complementary log-log (cloglog) form. It is a discrete time form of the continuous time proportional hazards model.…”

Section: Semi-parametric Resultsmentioning

confidence: 99%

Export survival pattern and its determinants: an empirical study ofChinese manufacturing firms

2014

Asian-Pac Economic Lit

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“…We apply the discrete‐time proportional hazards model to investigate the effects of participation in GVCs on export duration, which allows for a fully nonparametric estimation of the baseline hazard (Hess & Persson, ). Moreover, this model could control for the unobserved heterogeneity by employing a complementary log–log (cloglog) link function (Hess & Person, ; Ilmakunnas & Nurmi, ) as follows:

c log log false(1 - h_{italicitd} false) = α_{0} + α_{1} G V C_{it} + α X + γ_{t} + υ_{t} + υ_{j} + ε

where h itd is the discrete hazard rate for firm i exiting from destination country d in year t. GVC it is the main explanatory variable that represents the participation in GVCs for firm i in year t , and γ t is the interval baseline hazard. v t and v j represent the period fixed effect and industry fixed effect respectively.…”

Section: Empirical Analysismentioning

confidence: 99%

Does participation in global value chains extend export duration?

Zhu

Bin

Qian

2019

Review Development Economics

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This paper investigates the relationship between participation in global value chains (GVCs) and export duration based on a model of discrete-time proportional hazards. The econometric analysis relies on the merged data of Chinese Annual Survey of Industrial Firms (CASIF) database and Chinese Customs Trade Statistics (CCTS) database over the period from 2000 to 2013. Empirical results suggest that participation in GVCs could positively extend export duration and is robust to various specifications, including the samples with multiple spells, measurement error, and the alternative measure of participation in GVCs. Further studies based on heterogeneous variables demonstrate that the improvement of product quality, asset-specific investment, and product diversity for enterprises participating in GVCs could positively extend export duration. This paper contributes to our understanding of how participation in GVCs affects export duration based on firm heterogeneity. Our results may have important implications for enterprises wishing to avoid export risks.

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“…This literature looks at the survival of exporting and non-exporting firms on the home market; studies that investigate the determinants of surviving as an exporter on the export market includeIlmakunnas and Nurmi (2010) andWagner (2008a.…”

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confidence: 99%

International Trade and Firm Performance: A Survey of Empirical Studies since 2006

Wagner

2016

Microeconometrics of International Trade

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The literature on international trade and firm performance grows exponentially. This paper attempts to summarize what we learn from this literature to guide both future empirical and theoretical work in this area, and public debates and policy makers, in an evidence-based way. The focus is on the empirical part of the literature that consists of recently published papers using data for firms from manufacturing or services industries to study the links between international trade (exports and imports) and dimensions of firm performance (productivity, wages, profitability and survival). It discusses recent add-ons to the box of tools for empirical investigation in this field and suggests topics for future research.

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Dynamics of Export Market Entry and Exit

Cited by 14 publications

References 42 publications

Export survival pattern and its determinants: an empirical study ofChinese manufacturing firms

Export survival pattern and its determinants: an empirical study ofChinese manufacturing firms

Does participation in global value chains extend export duration?

International Trade and Firm Performance: A Survey of Empirical Studies since 2006

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