Firms’ exporting and importing activities: is there a two-way relationship?

Aristei, David; Castellani, Davide; Franco, Chiara

doi:10.1007/s10290-012-0137-y

Cited by 99 publications

(89 citation statements)

References 63 publications

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“…Indeed, during the crisis the probability of entry in foreign markets did not significantly change with respect to the previous period and, when total exports are considered, the firm probability to stop exporting in fact decreased. In addition, in line with the existing evidence on the positive association between firm importing and exporting (Kasahara and Lapham, 2008;Muû ls and Pisu, 2009;Aristei et al, 2013;Lo Turco and Maggioni, 2013) which may prove more important under the economic downturn (Behrens et al, 2012), from panel B it emerges that importers were actually more likely to start exporting in the recession. The likeliness of the drop of a product from the firm export basket was however increased by the crisis, thus contributing to explain the export slump, even if this result is not confirmed for regular exports.…”

Section: Resultssupporting

confidence: 74%

“…As far as firm access to import markets is concerned we show that importing, as expected, favours export activity in the crisis. Imported inputs may foster export activity thanks to the existence of common sunk costs and/or the enhancement of competitiveness occurring through cost saving or technology transfer (Kasahara and Lapham, 2008;Muû ls and Pisu, 2009;Aristei et al, 2013;Lo Turco and Maggioni, 2013). We show that this linkage is strengthened during the crisis.…”

Section: Summary Of the Findings And Discussionmentioning

confidence: 76%

“…We can expect the positive impact of importing on exporting shown in the literature (Muû ls and Pisu, 2009;Aristei et al, 2013;Lo Turco and Maggioni, 2013) to be even more important in a crisis: when the export market shrinks, cheaper/higher quality inputs may help to preserve competitiveness in the foreign market. However, an opposite result could emerge if foreign suppliers shut down their operations and domestic firms find no domestic substitutes for the missing imported inputs.…”

Section: Introductionmentioning

confidence: 99%

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The micro evolution of trade and turnover in Turkey under the global crisis

Turco

Maggioni

2014

Economic Systems

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We provide evidence on the effects of the 2009 crisis on Turkish manufacturing. The exploration of firm and firm-product extensive and intensive margins confirms the prevalence of the latter in the fall of export sales and discloses the former's relevance in the dramatic import contraction. The analysis of firm and product heterogeneity reveals that productivity drove the negative evolution of the export intensive margin to such an extent that it significantly affected trade extensive margins and postponable goods were the most affected products. In addition, the foreign demand shock suffered by exporters propagated to their import demand. Interestingly, we show that the crisis hit produced exports less than the carry-along ones and that the domestic market cushioned the downturn effects especially for larger firms. This hints at the importance of domestic counter-cyclical policies

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Section: Resultssupporting

confidence: 74%

Section: Summary Of the Findings And Discussionmentioning

confidence: 76%

Section: Introductionmentioning

confidence: 99%

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The micro evolution of trade and turnover in Turkey under the global crisis

Turco

Maggioni

2014

Economic Systems

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“…Also they find that sunk costs decrease when the complementary activity was carried out the past year, meaning that common fixed costs exist, and obtain a higher sunk cost for imports than for exports. Secondly, Aristei et al (2013) using data for Eastern European and Central Asian firms obtain a high degree of hysteresis for both activities, but higher for exports than for imports and find that past imports affect the probability to export in the current year but not the other way around.The numbers of studies focused on MENA countries are few. Related to the role that imported intermediates could play in technological diffusion, Brach (2010) assesses the role of technological readiness in the MENA region and the implications for Egypt.…”

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confidence: 94%

Imported Inputs and Egyptian Exports: Exploring the Links

Parra

Martínez‐Zarzoso

2015

Economics

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This paper is the first to explore the links between exporting and importing activities of Egyptian firms using panel data over the period from 2003 to 2007. The main aim is twofold. Firstly, the authors report regression results indicating that firms that both export and import are the most productive, followed by importing-, exporting-only firms and non-traders. Secondly, they estimate the determinants of the extensive and intensive margins of exports and imports using dynamic panel-Probit and panel-Tobit models in combination with the method proposed by Rabe-Hesketh and Skrondal (Avoiding biased versions of Wooldridge's simple solution to the initial conditions problem, 2013) to tackle the initial conditions problem. The results show that both activities present a high degree of hysteresis, which is higher for imports than for exports pointing to the existence of sunk costs in both activities. Moreover, past productivity does affect the extensive margin of imports, but not of exports and the initial condition status is also only relevant for the import side. Similar outcomes are obtained for the intensive margin of trade. JEL F14Keywords Firm level data; Egypt; internationalization; imports; exports; intermediates Authors María Dolores Parra, Research Group of Industry and Territory, Department of Economics -CREIP, Universitat Rovira i Virgili, 43204 Reus, Catalonia, Spain, and Institute of International Economics, Universitat Jaume I, Castellón, 12071, Spain, mparra@eco.uji.es Inmaculada Martínez-Zarzoso, Department of Economics, University of Göttingen, 37001 Göttingen, Germany, and Institute of International Economics, Universitat Jaume I, Castellón, 12071, Spain Citation María Dolores Parra and Inmaculada Martínez-Zarzoso (2015). Imported Inputs and Egyptian Exports: Exploring the Links. Economics: The Open-Access, Open-Assessment E-Journal, 9 (2015-38): 1-31. http:// dx.doi.org/10.5018/economics-ejournal.ja. www.economics-ejournal.org 2 IntroductionIn recent years, there has been a growing interest in the study of the internationalization strategies of small-and medium-size firms in developing countries. According to the related trade literature, a high proportion of trading firms are engaged in both importing and exporting activities. Kasahara and Lapham (2013) show that this is due to the presence of cost complementarities in both activities. Once one of the activities is carried out, the second becomes easier. These cost complementarities have motivated a new strand of research that further investigates the relationship between import and export activities at the firm level, especially those focused on the use of imported intermediates and their role in enhancing exports (Muûls and Pisu 2009;Bas 2012;Aristei et al. 2013;Kasahara and Lapham 2013;Lo Turco and Maggioni 2013). While most of the existent literature on the relationship between productivity and import and export activities has focused on developed countries, the literature concerning developing countries is still scarce. In particu...

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“…This is studied by Aristei et al (2013) who used firm-level survey data from 27 countries and found that a firm's importing increases its exports while a firm's exporting does not have any effect on its imports. Turco and Maggioni (2013) did a similar analysis for Italian firms and found that importers are more likely to start exporting.…”

Section: Introductionmentioning

confidence: 99%

Market Knowledge: Evidence from Importers

Erbahar

2017

SSRN Journal

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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. the channels that import experience might have on export entry. By identifying import experience using instrumental variables, and shutting down productivity channels with firm-year fixed effects, I find that having a supplier in the destination country raises the probability of exporting to that country by 5.5 percentage points on average, revealing a "market knowledge" phenomenon. The paper's main contribution to the literature is finding for the first time that firms' country-specific import experience increases the likelihood of exporting to that country. Digging further to explore heterogeneous effects, I find that this effect increases with the destination country's size, proximity, language similarity, and the size of its Turkish community. Moreover, the strength of the firm's relationship with its supplier as proxied by several variables such as the share of imported products that are differentiated increases the probability of export market entry. Terms of use: Documents inJEL codes: F1, F14, F61, L20

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Firms’ exporting and importing activities: is there a two-way relationship?

Cited by 99 publications

References 63 publications

The micro evolution of trade and turnover in Turkey under the global crisis

The micro evolution of trade and turnover in Turkey under the global crisis

Imported Inputs and Egyptian Exports: Exploring the Links

Market Knowledge: Evidence from Importers

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