Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/206615 
Year of Publication: 
2019
Series/Report no.: 
Economics Discussion Papers No. 2019-58
Publisher: 
Kiel Institute for the World Economy (IfW), Kiel
Abstract: 
In this paper, an original and simple theoretical model is developed to better integrate various dimensions of the firms' decision to export. The model sheds light on the affirmations of the founding models of the "new theory of international trade", in particular the role of productivity and sunk costs of exporting in the firms' export decisions. It can also explain stylized facts that seem difficult to reconcile with the implications of the founding models: 1) flows of export market entry and exit are substantial; 2) entry into export markets would be rather gradual in the sense that firms start exporting small quantities and, if they survive, quickly expand their exports.
Subjects: 
firm heterogeneity
self-selection
sequential exporting
JEL: 
F10
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

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