Giovannetti, Giorgia; Samiei, Hossein - C.E.P.R. Discussion Papers - 1996
This paper presents an empirical examination of the importance of hysteresis in international trade. An econometric … model of export determination is developed where the presence of sunk costs causes discontinuous behaviour and hysteresis so … States. The paper finds strong evidence in favour of the presence of pricing-to-market and hysteresis only in the case of …