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- W2767350686 abstract "International trade literature rationalizes that inexperienced firms mostly start exportingwith small shipments to a neighboring country to discover their own capabilities. Thisstrategy is called sequential exporting and is observed in different countries and withdifferent products.On the other hand, recent evidence shows that manufacturing firms do not actuallyproduce all of their exports. Carry-along Trade (CAT) refers to the exports ofmanufacturing firms that are not produced by themselves. CAT exports turn out to berelevant in terms of intensive and extensive margins of firms’ aggregate exports.The aim of the thesis is to combine these two different strands of literature by using thetheoretical and empirical characteristics of CAT (not self-produced), and MAN (selfproduced)products.In the theoretical framework, MAN products have high sunk costs and low marginal costs,whereas CAT products have higher marginal costs and lower sunk costs. The sequentialexporting model of Albornoz et al., (2012) is adjusted slightly to allow for different CATand MAN cost structures and new predictions are derived.In the empirical section, these predictions are tested by exploiting matched firm-levelTurkish Foreign Trade, Production, and Structural Business Statistics datasets for theperiod 2005-2011. New exporters which survive to export in the second year are classifiedinto two groups: sequential exporters that experiment in only one market andsimultaneous exporters that experiment in at least two markets. The results show that bothsequential and simultaneous exporters tend to use CAT exports for experimentation andfor expanding their market coverage. For second-year expansion in their first-markets,simultaneous exporters’ use CAT and MAN products roughly equally while sequentialexporters derive their export growth largely from CAT products. Operating in non-creditconstrained sectors accentuates the previous findings of first year-first market exportgrowth and the probability of second-year entry to new markets. Findings of first yearfirstmarket export growth are intact for added specifications of productivity and foreignownership. However, no inferences can be drawn for the probability of entering newmarkets in the second-year of exporting." @default.
- W2767350686 created "2017-11-17" @default.
- W2767350686 creator A5028267516 @default.
- W2767350686 date "2017-09-01" @default.
- W2767350686 modified "2023-09-27" @default.
- W2767350686 title "Sequential exporting with carry-along trade products: evidence from Turkey" @default.
- W2767350686 hasPublicationYear "2017" @default.
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