Import experience and the post-entry performance of first-time exporters

Author:

Serrano Guadalupe1,Requena Francisco2,Mínguez Raúl3

Affiliation:

1. Department of Economic Analysis, Universitat de València, Valencia, Spain

2. Department of Applied Economics Ⅱ, Universitat de València, Valencia, Spain

3. Chamber of Commerce of Spain & Universidad Nebrija, Madrid, Spain

Abstract

<abstract> <p>Using the universe of Spanish first-time exporters selling manufactured products over the period 1997–2018, we show that import experience is associated with higher survival rates in the export markets, and conditioning on survival, a higher growth rate of their exports. In both cases, the highest impact is obtained when previous import experience occurs within one year before firms start exporting. Import experience improves general knowledge about foreign markets but it is not market-specific. Post-entry success in terms of survival and persistent growth rises if new exporters are large importers and if they buy intermediate inputs from competitive foreign suppliers.</p> </abstract>

Publisher

American Institute of Mathematical Sciences (AIMS)

Subject

General Economics, Econometrics and Finance

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