Bugamelli, Matteo; Infante, Luigi - Banca d'Italia - 2003
Using a very large panel dataset of Italian manufacturing firms, we test an empirical model of foreign markets … exchange rate determined substantial flows of firms in and out of foreign markets. We find that sunk costs of exporting are … the 1990s can be considerable and long-lasting. We then relate sunk costs to firm size and find that they are an important …