Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/222534 
Year of Publication: 
2020
Citation: 
[Journal:] Economics: The Open-Access, Open-Assessment E-Journal [ISSN:] 1864-6042 [Volume:] 14 [Issue:] 2020-22 [Publisher:] Kiel Institute for the World Economy (IfW) [Place:] Kiel [Year:] 2020 [Pages:] 1-15
Publisher: 
Kiel Institute for the World Economy (IfW), Kiel
Abstract: 
In this paper, a conceptual 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 decision. It also takes into account two stylized facts that seem difficult to be reconciled with the implications of the founding models: 1) many domestic firms, regardless of their productivity level, enter foreign markets every year with little sales and cease all exporting activities in less than a year; 2) several of high-productivity firms choose to only serve their domestic market.
Subjects: 
firm heterogeneity
self-selection
sunk cost of exporting
JEL: 
F10
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

Files in This Item:
File
Size
790.28 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.