Abstract
In this paper, we analyse empirically the determinants of the decision to export, and the export share of manufacturing firms using a large balanced panel database of firms from Spain, spanning from 1990 to 2012. We are particularly interested in investigating these determinants by controlling for state dependence, unobserved heterogeneity and endogenous initial conditions of firms. Our findings reveal that firms show a high persistence in export behaviour, and that export volume changes are determined primarily by changes in the intensive margin. In addition, our research suggests that having exported before, having achieved a certain productivity level and being large and foreign-owned, greatly increased the probability of exporting. Moreover, these results hold even for the export share of firms, except for productivity and foreign capital, which seem to be less relevant.
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Notes
The percentage of sporadically exporting firms can be obtained adding the exit and entry rate (1.6 and 0.3) calculated for the five year period (see Fig. 4).
Esteve et al. (2009) get higher figures of two years exporting firms, and higher ratios of exit and entry rates into this category, because their firms sample is different from ESEE. They use the export and import directory of firms from the Spanish tax agency (directorio de empresas exportadoras e importadoras de la Agencia Tributaria) which includes firms that necessarily must have exported at least once. Máñez-Castillejo et al. (2008), using the same firms’ survey as we do (ESEE), present almost similar results for two year period exit and entry ratios, although their period of analysis (1990–2000) and the sample of firms (755) are different. Bank of Spain (2011) gets much higher figures for two and five years period entry and exit rates (25 % and 10 % on average respectively), but these figures are not comparable because they use a much broader sample of firms that includes all types of firms, including micro firms that are not present in the ESEE, which supposedly have more volatile export behaviour.
The adaptation consists of how we define a new trade relationship. We consider a new trade relationship in broad terms, as any firm that starts exporting without taking into account new markets or products.
These data are available upon request.
Heckman, J.J., 1981. Heterogeneity and state dependence in S. Rosen (Ed.), Studies in labor markets, 91–140. Chicago: Chicago University Press.
Wooldridge, J.M. (2005), Simple solutions to the initial conditions problem n dynamic, nonlinear panel data models with unobserved heterogeneity, Journal of Applied Econometrics, 20, 39–54.
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Altuzarra, A., Bustillo, R. & Rodríguez, C. Understanding Export Market Success: Evidence from Manufacturing Firms. Open Econ Rev 27, 161–181 (2016). https://doi.org/10.1007/s11079-015-9368-6
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DOI: https://doi.org/10.1007/s11079-015-9368-6