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Export Entry and Exit by German Firms
Open accessAbstract
This paper examines the decision to enter the export market by German firms. While exports have played an important role in recent German business cycle movements, 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 in export entry; exporting today by a plant increases the probability that the plant will export tomorrow by 50%. This advantage depreciates quickly, falling by two thirds in a year. We also find evidence that plant success, as measured by size and productivity, increases the likelihood of exporting.
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Citations
Cited by
Much Ado about Nothing? Do Domestic Firms Really Benefit from Foreign Direct Investment?
Gorg, H. (2004) · The World Bank Research Observer · doi:10.1093/wbro/lkh019 · Cited by 1,622
Exports and Productivity: A Survey of the Evidence from Firm‐level Data
Wagner, J. (2007) · The World Economy · doi:10.1111/j.1467-9701.2007.00872.x · Cited by 1,543
Self-citationFirm Heterogeneity, Exporting and Foreign Direct Investment
Greenaway, D., & Kneller, R. (2007) · The Economic Journal · doi:10.1111/j.1468-0297.2007.02018.x · Cited by 1,051
The Happy Few: The Internationalisation of European Firms: New Facts based on Firm-level Evidence
Mayer, T., & Ottaviano, G. I. P. (2008) · Intereconomics · doi:10.1007/s10272-008-0247-x · Cited by 623
International Trade and Macroeconomic Dynamics with Heterogeneous Firms
Ghironi, F., & Melitz, M. J. (2005) · The Quarterly Journal of Economics · doi:10.1093/qje/120.3.865 · Cited by 587
Metadata
- Authors
- Bernard, A., & Wagner, J.
- Venue
- National Bureau of Economic Research
- Publisher
- National Bureau of Economic Research
- Published
- 1998-04
- OpenAlex
- W2891872314
- Cited by
- 288
- References
- 0
- Type
- report
- Language
- en
- Open access
- green
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- Bernard, A., & Wagner, J. (1998). Export Entry and Exit by German Firms. National Bureau of Economic Research. https://doi.org/10.3386/w6538
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.