Exploring the Margins of Dutch Exports: A Firm-Level Analysis

Creusen, Harold; Kox, Henk L.M.; Lejour, Arjan; Smeets, Roger

doi:10.1007/s10645-011-9172-7

Cited by 8 publications

(12 citation statements)

References 40 publications

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“…However, the export adjustment in Luxembourg (Mangiarotti & Schuller, ) has taken place at the extensive margin. Substantial dynamics of exports at the extensive margin, mostly amongst small and young exporters, has been also found in the Netherlands (Creusen, Kox, Lejour, & Smeets, ). Further evidence indicates that young exporters tend to grow by expanding their market destinations.…”

Section: Theoretical and Empirical Backgroundmentioning

confidence: 84%

Firm strategies in expanding and diversifying exports

2018

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This paper provides novel empirical evidence on the patterns and dynamics of exports by Irish firms over the past two decades from a highly detailed data set of export records at the firm‐product‐destination level. We identify patterns of export concentration and specialisation and how these evolved over time. Firms’ strategies for export growth along product and destination markets mixes are then examined and the contributions of intensive (average sales) and extensive (number of products or markets) margins to overall exports and to export growth are calculated. We find that most exporting firms are quite small, selling a few products to a small number of destinations while export values are dominated by a relatively small group of highly globalised large firms selling many products to many destinations. Continuing exporters frequently introduce new products, drop products and enter and exit markets. Export growth in the case of Irish‐owned exporters appears largely driven by the extensive margin of product and destination changes. However, the opposite pattern holds for foreign‐owned firms with growth mainly coming from the intensive margin.

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Section: Theoretical and Empirical Backgroundmentioning

confidence: 84%

Firm strategies in expanding and diversifying exports

2018

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“…6 Labour productivity is deflated with value added prices of industries at the two-digit level. 7 Creusen et al (2011) confirm that distance has a significant effect on both market entry and trade volume.…”

Section: Total Exports Startersmentioning

confidence: 74%

“…We know that the distribution of exporting firms over the number of markets is skewed (Creusen et al 2011). Most firms only export to one or two nearby markets.…”

Section: The Estimated Determinants Of Market Entrymentioning

confidence: 99%

“…For most Dutch firms it is more attractive to enter EU markets rather than non-EU markets due to the EU internal market, the smaller distances and higher incomes in Europe (Creusen et al 2011). Consequently, the probability to enter non-EU markets is lower.…”

Section: The Estimated Determinants Of Market Entrymentioning

confidence: 99%

“…Mostly, the further away countries are in geographical terms, the larger are the cultural and institutional differences. 19 Creusen et al (2011) have shown that market entry costs for Dutch exporters are also positively related to the degree of corruption and cultural dissimilarity, and negatively related to the quality of institutions and regulatory quality. We check whether it is the geographical distance or just the quality/level of institutions or culture that determines the stepping stone strategy.…”

Section: The Estimated Determinants Of Market Entrymentioning

confidence: 99%

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Using Stepping Stones to Enter Distant Export Markets

Lejour

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2015

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This paper analyses firms' export entry decisions and their subsequent expansion to other export markets using Dutch firm-level international transaction data. In particular new exporters increase quickly the distance between their export markets and their home country. They are also going to export to countries in which the institutional and regulatory quality is lower. We show that firms follow a stepping stone approach for learning to export and to enter distant markets. The probability to enter a market at 1,000 km from the Netherlands increases by about 25% if the firm already exports to a market at 500 km from the new one.

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The Duration of Dutch Export Relations: Decomposing Firm, Country and Product Characteristics

Lejour

2014

De Economist

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Using Dutch transaction-level data on international trade we find that the intensive margin drives trade growth year by year. After 6 years, new trade relations cover about 50 % of Dutch exports. Only 25 % of the new relations specified by firm, product and destination survives after 2 years. The estimates conclude that new trade relations with new exporting firms or with new destinations have lower hazard rates than those with new products. If the destination is an EU country the hazard is much lower as is also case for higher initial sales.

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Exploring the Margins of Dutch Exports: A Firm-Level Analysis

Cited by 8 publications

References 40 publications

Firm strategies in expanding and diversifying exports

Firm strategies in expanding and diversifying exports

Using Stepping Stones to Enter Distant Export Markets

The Duration of Dutch Export Relations: Decomposing Firm, Country and Product Characteristics

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