Market Access, Export Performance and Survival: Evidence fromPeruvian Firms

Abstract

This paper explores the effect of market access on firms' export performance and their survival in foreign markets. The data used covers all Peruvian exporting firms between 2002 and 2008, a period during which Peru was active in joining the global economy. This is done using two indices, one that summarizes the tariffs faced by exporters, the other that measures the preferential margin at the bilateral level. Results show that more than market access conditions per se, it is market access conditions relative to those faced by competitors that significantly influences export performance and survival. About a fifth of the increase of exports directed to Mercosur countries is due to improvement in preference margins.

Relationship Between Inflation and Real Economic Growth in Rwanda

“…Although Baldauf et al (2000) consider this factor to have a neutral influence, most researchers (e.g., Fugazza and McLaren 2014;Jordan 2014;Kahiya and Dean 2014) have proved a negative influence. According to the regression equation, psychic distance has a positive influence on export profitability.…”

Export experience and financial performance of small and medium enterprises

“…Ottaviano and Martincus (2011) also note that only a portion of effective firms enter the export arena and, possibly, benefit from the potentially larger market share and profit. Being part of some form of an international production network also positively affects survival through improved performance (Fugazza & McLaren, 2013). However, performance seems to depend on export experience as well.…”

Should I Stay or Should I Go? Firm Heterogeneity in the Post‐crisis Period

“…1 Empirical studies that employ random effects probit models include Bridges and Guariglia (2008), Greenaway et al (2007), Fugazza and Mclaren (2014) and Díaz-Mora et al (2015).…”

“…Secondly, the learning-by-exporting hypothesis (Bernard and Jensen, 1999;de Loecker, 2007) which is based on the premise that firms become better as a result of international experience, through exposure to best practice, both in terms of technology and management practices. Evidence on firm survival argues that exporting makes firms more resilient, increasing the probability of firm survival (Dunne and Hughes, 1994;Wagner, 1994;Bridges and Guariglia, 2008;Fugazza and McLaren, 2014). However, fewer studies have looked at the factors that affect whether a firm stays in overseas markets (Wagner, 2008;Ilmakunnas and Nurmi, 2010;Harris and Li, 2011).…”