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Sequentially Exporting Products across Countries

Author

Listed:
  • Facundo Albornoz

    (University of Nottingham)

  • Héctor F. Calvo Pardo

    (University of Southampton)

  • Gregory Corcos

    (Ecole polytechnique)

  • Emanuel Ornelas

    (Sao Paulo School of Economics-FGV)

Abstract
Exploiting disaggregated data on French exporters, we show that firms expand their product scope and geographical presence sequentially. This process of internationalization is uneven over time, exhibiting more volatility early than later in the life cycle of exporters. Specifically, young exporters are particularly likely to exit, and if they keep exporting, to expand at the intensive and sub-extensive margins, doing so by widening product scope within a destination before enteringnew destinations. We also find that firms’ core products are particularly resilient despite being used to “test the waters” when entering additional countries. Existing models of firm export dynamics are not designed to explain these empirical regularities. We argue that they can be rationalized by a mechanism where new exporters are uncertain about the profitability of their products in different markets, but learn from their initial export experiences and then adjust their sales, number of products and destination countries accordingly.

Suggested Citation

  • Facundo Albornoz & Héctor F. Calvo Pardo & Gregory Corcos & Emanuel Ornelas, 2023. "Sequentially Exporting Products across Countries," Working Papers 212, Red Nacional de Investigadores en Economía (RedNIE).
    • Handle: RePEc:aoz:wpaper:212
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    File URL: https://rednie.eco.unc.edu.ar/files/DT/212.pdf
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    References listed on IDEAS

    as
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    Cited by:

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    3. Erhardt, Katharina & Gupta, Apoorva, 2024. "Go wide or go deep: Margins of new trade flows," DICE Discussion Papers 415, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    4. Kazunobu Hayakawa & Nuttawut LAKSANAPANYAKUL & Toshiyuki Matsuura & Taiyo Yoshimi, 2024. "Export Dynamics and Invoicing Currency," Keio-IES Discussion Paper Series 2024-005, Institute for Economics Studies, Keio University.
    5. Carsten Eckel & Ina Charlotte Jäkel & Luca Macedoni & Raymond Riezman & Raymond G. Riezman, 2024. "Testing the Waters: How Firms Enter New Markets," CESifo Working Paper Series 11340, CESifo.

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    More about this item

    Keywords

    Export dynamics; experimentation; uncertainty; multiproduct firms; market inter- dependence.;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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