Export Characteristics and Output Volatility: Comparative Firm-Level Evidence for CEE Countries

International trade and technological competition in markets with dynamic increasing returns

“…Others have instead focused on the impact of international trade on volatility. In particular, some of the latter studies have found that exporters sales growth rate volatility is on average greater than non-exporters (Ćede et al, 2018;Vannoorenberghe, 2012). Furthermore the reallocation of market shares between foreign and domestic incumbents impacts the odds to grow or to shrink also at higher levels of aggregation (i.e.…”

“…Finally, the increasing importance of international competition, fostered by the fall of trade barriers in the last decades, has increased the awareness about the signi cant impact of trade ows on industry and rm dynamics. In that respect, recent studies have found that market concentration (di Giovanni et al, 2011) and volatility (di Giovanni and Levchenko, 2009, 2012Vannoorenberghe, 2012;Ćede et al, 2018;di Giovanni et al, 2019) are positively a ected by trade openness.…”

The Asymmetric Effect of Trade Openness on Output Volatility: Empirical Evidence from Ethiopia

“…Others believe that more openness may aggravate the economy's responsiveness to external shocks (See, Haddad et al, 2013). Empirically there are several studies documented a positive influence of trade openness on volatility (See, Aigheyisi & Isikhuemen, 2018;Čede et al, 2016;Abubaker, 2015;Danilo & Lorenzo, 2018;Eduardo, 2007;Mujahid & Alam 2014;Mireku, et al 2017). The major driver behind the positive interaction among openness and volatility, according to Čede et al (2016), is specialization accompanied by openness.…”

“…On the contrary other studies (See, Huchet et al, 2018;Giovanni & Levchenko, 2009) established that trade open leads to negative output volatility. Despite the influence of trade open on volatility is largely studied, the extent to which openness impacts volatility could also relied on other features (Caldero, & Schmidt-Hebbel, 2008) such as; developmental stage (Abubaker, 2015), the level of volatility of tourism (Jackman, 2014), export concentration, the degree of specialization (Giovanni & Levchenko, 2009), the wealth of a country (Čede et al, 2016;Hegerty, 2014) and it could be country-specific. More dominant knowledge among economists and policymakers, however, is that global trade leads to bigger output volatility (Giovanni & Levchenko, 2009), which is frequently mentioned as a detrimental effect of openness to international trade (Karim & Stoyanov, 2019).…”

“…Particularly, the study focuses on the asymmetrical long-run effect of openness on volatility by using the latest NADRL model. There are previous studies focused on the impact of trade openness on volatility (see, Čede et al, 2016;Abubaker, 2015;Danilo & Lorenzo, 2018;Mireku et al, 2017;Giovanni & Levchenko, 2009;Eduardo, 2007;Mujahid & Alam, 2014;Huchet et al, 2018;Aigheyisi & Isikhuemen, 2018;Bejan, 2006;Hegerty, 2014). However, most of the empirical studies concentrated on the links between trade openness and economic growth and/or, between volatility and growth.…”