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In endeavouring to explain the empirical puzzle that the sunk costs of exporting are important, but that, at the same time, trade flows do not, on average, survive for very long, this paper explores the concepts of core and peripheral markets. First, it illustrates that if the importance of sunk...
Persistent link: https://www.econbiz.de/10013049016
In this paper, a conceptual theoretical model is developed to better integrate various dimensions of the firms' decision to export. The model sheds light on the affirmations of the founding models of the 'new theory of international trade', in particular the role of productivity and sunk costs...
Persistent link: https://www.econbiz.de/10012251260
In this paper we test both sunk cost and strategic size liability predictions by looking at the exit behavior of a sample of Italian manufacturing plants. For this purpose, we focus on plants' size and ownership status. In particular, we distinguish independent plants from plants that belong to...
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firms with exports and R&D dominates that of exporters without R&D, which in turn dominates that of firms that neither … Germany and Denmark. The model, therefore, seems to be useful to guide empirical work on the relation between exports, R&D and …
Persistent link: https://www.econbiz.de/10010411417
This paper analyses the main drivers of Italian service exports using firm-level data. A gravity equation, augmented … processing in the period from 2013 to 2018. The econometric analysis shows that FDI is, among the standard drivers of exports …’ exports of services, pointing to complementarity rather than to substitution. This evidence suggests that a significant …
Persistent link: https://www.econbiz.de/10014092437
A recent study argues that the contraction in total trade that occurred during the crisis was mainly driven by the fall in high quality goods, which should have higher income elasticity owing to a non-linear Engel curve. Our aims are, on the one hand, to test the quality Engel curve assumption...
Persistent link: https://www.econbiz.de/10013117254
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