Learning, incomplete contracts and export dynamics: Theory and evidence from French firms

Aeberhardt, Romain; Buono, Inés; Fadinger, Harald

doi:10.1016/j.euroecorev.2014.02.004

Cited by 63 publications

(66 citation statements)

References 33 publications

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“… This completes different works that have emphasized the role played by the matching process between suppliers and clients in international trade (Rauch & Watson, ; Eslava, Tybout, Jinkins, Krizan, & Eaton, ; Araujo, Mion, & Ornelas, ; Aeberhardt, Buono, & Fadinger, ).…”

supporting

confidence: 67%

Trade networks and colonial trade spillovers

Berthou

Ehrhart

2017

Rev International Economics

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This paper provides new empirical evidence regarding the formation of international trade networks. Established trade relations may open the gate to new trade opportunities, as they allow meeting new trade partners over time. We test this prediction and its implications for aggregate trade patterns by using the experience of ancient trade linkages between former colonies and their former colonizers (colonial trade linkages). We first show, using aggregate trade data, that former colonies have more trade with former colonizer's neighbors (colonial trade spillovers). We then show that the past export and import experience of former colonies with the colonizer have an impact on the propensity to trade similar products with third countries. In particular, the trade spillover effect is negatively related to geographical distance between third countries and the colonizer, and positively affected by their degree of economic integration.

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supporting

confidence: 67%

Trade networks and colonial trade spillovers

Berthou

Ehrhart

2017

Rev International Economics

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“…Recently, the role of search costs in international exchanges has received increased attention. Search-cost-based models emphasize that a reduction in search costs can facilitate trade and that institutions can alleviate such frictions (see, e.g., Rauch and Watson (2003), Aeberhardt et al (2010) and Araujo and Mion (2011)). An important result derived from these models is that institutional quality not only affects the mode of entry into a market, but also the evolution of trade volumes.…”

Section: The Link Between Institutions and Tradementioning

confidence: 99%

“…Araujo and Mion (2011) found evidence that institutional quality affects the growth of exports in Belgium and that global firms are less affected by institutional quality than smaller firms. Aeberhardt et al (2010) analyzed French exporting firms and found that trade with countries with welldeveloped institutions was characterized with a low hazard rate.…”

Section: Introductionmentioning

confidence: 99%

Dynamic effects of institutions on firm-level exports

Söderlund

Tingvall

2013

Rev World Econ

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“…Following Melitz () and Bernard and Jensen (), a number of theoretical models and empirical studies have suggested that decisions to export and import are state dependent and that persistence in exporting and importing may be due to the large costs to individual firms of entering foreign markets (Aeberhardta, Buonob & Fadinger, ; Campa, ; Kaiser & Kongsted, ; Kasahara & Lapham, ; Timoshenko, ). These costs can be categorized into upfront sunk costs (e.g., finding reliable buyers/suppliers and establishing distribution channels) and fixed costs (e.g., contracting costs, transportation costs, and customer service costs).…”

Section: Introductionmentioning

confidence: 99%

Importing exporters and exporting importers: A study of the decision of Chinese firms to engage in international trade

Elliott

Horsewood

Zhang

2018

Rev International Economics

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This paper examines the complex and interdependent relationship between importing and exporting for a panel of Chinese manufacturing firms. We estimate the decision to import and export simultaneously within a dynamic random‐effects bivariate probit framework addressing the endogenous initial conditions problem. Results show that decisions to export and import are simultaneously determined and that sunk‐entry costs play a significant role in a firm's decision to enter international markets. Costs are larger for exporting. We also find a substitution effect between the two decisions. The substitutability between exporting and importing is greater for financially constrained private firms.

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Learning, incomplete contracts and export dynamics: Theory and evidence from French firms

Cited by 63 publications

References 33 publications

Trade networks and colonial trade spillovers

Trade networks and colonial trade spillovers

Dynamic effects of institutions on firm-level exports

Importing exporters and exporting importers: A study of the decision of Chinese firms to engage in international trade

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