Financial Development and Survival of African Agri-food Exports

Jaud, Melise; Kukenova, Madina

doi:10.1596/1813-9450-5649

Cited by 20 publications

(14 citation statements)

References 21 publications

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“…Other papers confirm similar findings of very short export duration for a range of samples. Examples are Sabuhoro et al (2006), Görg, Kneller and Muraközy (2007), Freund and Pierola (2010), Ilmakunnas and Nurmi (2010), Cadot et al (2011), Creusen and Lejour (2011), Jaud and Kukenova (2011), Tovar and Martínez (2011), Békés and Muraközy (2012) and Esteve-Pérez et al (2012).…”

Section: Introductionmentioning

confidence: 99%

How to combine high sunk costs of exporting and low export survival

Gullstrand

Persson

2014

Rev World Econ

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractIn endeavouring to explain the empirical puzzle that the sunk costs of exporting are important, but that, at the same time, trade flows do not, on average, survive for very long, this paper explores the concepts of core and peripheral markets. First, it illustrates that if the importance of sunk costs as well as the expected future returns from exporting are different, depending on whether the export decision refers to a core or a peripheral market, it is plausible that while firms will tend to stay on the core market for a long time, they will enter and exit the peripheral market much more frequently. Second, using firm-product-destination-specific export data for all firms in the Swedish food chain for the period 1997-2007, an empirical test is carried out to ascertain whether there is support for the hypothesis that trade duration will be longer for core markets. Employing two variables that capture different aspects of the core/periphery dimension, it is found that firms will indeed tend to stay longer in their core markets, while export decisions regarding peripheral markets are much less long-term. The conclusion, therefore, is that the empirical puzzle can be explained by taking into account the fact that the trade hysteresis literature builds on data on the core market decision to export or not, and that the trade survival literature also includes data on decisions to stay in or exit peripheral markets. JEL classification: F10; F14

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Section: Introductionmentioning

confidence: 99%

How to combine high sunk costs of exporting and low export survival

Gullstrand

Persson

2014

Rev World Econ

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“…Recent papers using a similar identification strategy with microeconomic data areJaud and Kukenova (2011) which shows that agri-food products that require more external finance survive longer in foreign markets if the exporting country is more financially developed, and Tsoukas (2011) which presents evidence that stock market development is particularly beneficial to large firms.…”

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confidence: 99%

Financial development, exporting and firm heterogeneity in Chile

Álvarez

López

2012

Rev World Econ

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Artículo de publicación ISI.Using plant-level data from the manufacturing sector of Chile for the period 1990–2000, this paper examines the effect of financial development on the probability of exporting at the plant level, with a special focus on the heterogeneous responses of plants with different characteristics. The main results are that an improvement in financial development increases the probability of exporting of more productive plants and those with foreign ownership operating in manufacturing sectors that are more dependent on external finance. Our estimates also show that financial development does not appear to improve the probability of exporting for relatively smaller and younger plants. This result suggests that, at least for the case of exporting in Chile, smaller and younger plants are not necessarily more likely to benefit than larger and older plants from improvements in access to credit

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“…Due to the expansion of agricultural trade between industrialized and developing countries, private standards have quickly become a global phenomenon, influencing developing countries' markets and producers (Jaffee and Masakure 2005;. Understanding the impact of private food standards on developing countries is imperative, as agricultural and food exports are a fundamental component of developing countries' growth and entail the potential to reduce rural poverty (Jaud and Kukenova 2011).…”

Section: Challenges Ahead and Recommendationsmentioning

confidence: 99%