Working Paper: CEPR ID: DP6614
Authors: Holger Grg; Richard Kneller; Balzs Murakzy
Abstract: We analyse a very rich and unique panel database which provides information on exports at the firm-product level. A stylised fact in the data is that many firms add as well as drop products from the export mix in any given year. Motivated by recent theory we investigate what determines the survival of products in the export mix. Estimating hazard models we find evidence that is consistent with the view that characteristics of the product as well as that of the firm matter. This suggests, in line with theory, that there are firm- as well as firm-product specific competencies that are important for shaping firms? export mix.
Keywords: competencies; export mix; product level; product survival
JEL Codes: F12; F14
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| firm productivity (D22) | hazard rate of product exit (C41) |
| revenue share in export mix (F10) | hazard rate of product exit (C41) |
| product quality (L15) | hazard rate of product exit (C41) |
| prior experience in exporting similar products (F10) | hazard rate of product exit (C41) |
| comparative advantage (F11) | hazard rate of product exit (C41) |