Firm Behaviour and the Introduction of New exports: Evidence from Brazil

Abstract

SummaryThis paper contributes to understanding the process of export diversification by analysing firm level determinants in Brazil during the period 2000-2009. The first objective of the paper is to establish the set of firm characteristics and processes that are more conductive to new exports; the second, to identify different pathways to diversification regarding relatedness and sophistication and, which firm level behaviours can be associated to the different paths. We answer these questions using a unique dataset that links data on exports, innovation and firms characteristics at the firm level. The paper contributes to the literature on export diversification and on preparation for exporting by identifying firm level behaviours that contribute to the process of diversification. In particular, the findings suggest that firms prepare for diversification by first gaining power in the domestic market and more importantly that they do so by adopting specific innovation and learning efforts.

The Pattern of Structural Change: Testing the Product Space Framework

“…Analogous results are found by Cirera et al (2012) in Brazil for the period 2000-2009. The authors document that trade diversification mostly stems from related sectors.…”

The Experience of Survival: Determinants of Export Survival in Lao PDR

“…The concept of upgrading has been used in the firm portfolio and export diversification literature (Cirera, Marin, & Markwald, 2012;Zhu & Fu, 2013). Esteve-Perez, Sanchis-Llopis, and Sanchis-Llopis (2010) have analyzed competing risks in firm exits from the market by liquidation or acquisition, while Pisu (2008) looked at the choice of export market between developing and developed destinations.…”

“…Here, upgrading means cases when the firm follows the end of a contract with another one to the same destination but for a product with a higher PRODY, 10 as a measure of product sophistication (Cirera et al, 2012). The follow-up must not be later than 12 months after the end of the first contract, in order to be consistent with the definitions in use.…”

Determinants of Export Survival in the Lao PDR

“…The concept of upgrading is common in the firm portfolio and export diversification literature (Cirera, Marin and Markwald 2012). Competing risks analyses have also been made of firm exits from the market by liquidation or acquisition (Esteve-Perez, Sanchis-Llopis and Sanchis-Llopis 2010) and on the choice of export market between developing and developed destinations (Pisu 2008).…”

“…It appears that this type of analysis has not yet been used in export survival research, which tends to consider terminations as final (and necessarily bad), and therefore this contribution has the potential to expand our understanding of trade dynamics at the firm-level. Examples in related fields of study are firm exits from the overall market through merger, acquisition, voluntary liquidation or bankruptcy (Esteve-Perez, Sanchis-Llopis and Sanchis-Llopis 2010) and export preparation and diversification strategies (Cirera, Marin and Markwald 2012).…”