Export entry and exit by German firms
Publikation: Beiträge in Zeitschriften › Zeitschriftenaufsätze › Forschung › begutachtet
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in: Weltwirtschaftliches Archiv, Jahrgang 137, Nr. 1, 2001, S. 105-123.
Publikation: Beiträge in Zeitschriften › Zeitschriftenaufsätze › Forschung › begutachtet
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TY - JOUR
T1 - Export entry and exit by German firms
AU - Bernard, Andrews B.
AU - Wagner, Joachim
PY - 2001
Y1 - 2001
N2 - Export Entry and Exit by German Firms. - While exports have played an important role in German business cycles, little is known about the export supply response of German firms. This paper presents a dynamic model of the export decision by a profit-maximizing firm. Using a panel of German manufacturing plants, we test for the role of plant characteristics and sunk costs in the entry decision. We find evidence for substantial sunk costs: exporting today by a plant increases the probability by 50 percent that the plant will export tomorrow. This advantage depreciates quickly, falling by two-thirds in a year. The authors also find evidence that plant success, as mea-sured by size and productivity, increases the likelihood of exporting.
AB - Export Entry and Exit by German Firms. - While exports have played an important role in German business cycles, little is known about the export supply response of German firms. This paper presents a dynamic model of the export decision by a profit-maximizing firm. Using a panel of German manufacturing plants, we test for the role of plant characteristics and sunk costs in the entry decision. We find evidence for substantial sunk costs: exporting today by a plant increases the probability by 50 percent that the plant will export tomorrow. This advantage depreciates quickly, falling by two-thirds in a year. The authors also find evidence that plant success, as mea-sured by size and productivity, increases the likelihood of exporting.
KW - Economics
KW - Deutschland
KW - Export
UR - http://www.scopus.com/inward/record.url?scp=0035609004&partnerID=8YFLogxK
U2 - 10.1007/BF02707602
DO - 10.1007/BF02707602
M3 - Journal articles
VL - 137
SP - 105
EP - 123
JO - Weltwirtschaftliches Archiv
JF - Weltwirtschaftliches Archiv
SN - 0043-2636
IS - 1
ER -