The life cycle of exporting rms (original) (raw)
2013
We use detailed micro data from the Portuguese manufacturing sector to study the evolution of export performance over the rm life cycle. We nd that, as rms age, the distributions of employment, export revenue, number of destinations and exported products shift progressively to the right. We also show that market selection based on initial size or export performance plays a minor role in explaining this evolution; and that, as rms grow older, they tend to pay higher wages, import more expensive inputs, and charge higher prices for exports, especially in sectors with greater scope for product di¤erentiation. This evidence points to a life cycle in which successful exporters typically start small and grow progressively as they age; rst at home, then abroad; while upgrading the quality of their products. We discuss the implications of these ndings for recent theories of export dynamics. Keywords: Firm-level exporting, rm dynamics, product quality. JEL: F1. We would like to thank ...
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