The DNA of New Exporters: Spin-offs and FDI at the Extensive Margin of Trade
- (pp. 397-408)
(Complimentary)
Abstract
Other than that new exporters account for a large part of aggregate export growth, we know little else. We document that aggregate export growth in Chile is driven by only a few new exporters. These exporters are new business entities, operate new plants, and behave much like experienced exporters: they start large and have high survival rates. Moreover, 70 percent of these new firms are owned by existing businesses and are likely the by-product of either domestic spin-offs or foreign direct investment (24 percent). By focusing on the average new exporter, the existing models of new exporter dynamics miss these key features of export growth.Citation
Blum, Bernardo S., Sebastian Claro, Ignatius Horstmann, and Trevor Tombe. 2020. "The DNA of New Exporters: Spin-offs and FDI at the Extensive Margin of Trade." American Economic Review: Insights, 2 (3): 397-408. DOI: 10.1257/aeri.20190379Additional Materials
JEL Classification
- F14 Empirical Studies of Trade
- F23 Multinational Firms; International Business
- L22 Firm Organization and Market Structure
- L60 Industry Studies: Manufacturing: General
- M13 New Firms; Startups
- O14 Industrialization; Manufacturing and Service Industries; Choice of Technology
- O19 International Linkages to Development; Role of International Organizations