[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/era/wpaper/dp-2021-46.html
   My bibliography  Save this paper

Export Market Survival of Pioneers and Followers

Author

Listed:
  • Chin Hee Hahn,

    (Gachon University, Republic of Korea)

  • Ju Hyun Pyun

    (Korea University Business School, Republic of Korea)

Abstract
This study investigates empirically whether export pioneers and followers are different in terms of export market survival, utilising a rich plant-product-level dataset on Korean manufacturing industries for 1991–1997. We find that export pioneers that bring new products to the export market are less likely to survive than export followers of the existing export products. We also find that there is some heterogeneity in the export survival probability after new export entry, even amongst export pioneers and followers. Amongst export followers, the followers of the existing products show higher survival rates than those of the export-pioneered products. Amongst export pioneers, those that introduce a new product to both domestic and export markets simultaneously for the first time in the economy exhibit higher survival than export pioneers that take an existing domestic product to the export market.

Suggested Citation

  • Chin Hee Hahn, & Ju Hyun Pyun, 2021. "Export Market Survival of Pioneers and Followers," Working Papers DP-2021-46, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2021-46
    as

    Download full text from publisher

    File URL: https://www.eria.org/uploads/media/discussion-papers/FY21/Export-Market-Survival-of-Pioneers-and-Followers.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Archanun Kohpaiboon & Juthathip Jongwanich, 2021. "The Effect of the COVID-19 Pandemic on Global Production Sharing in East Asia," Working Papers DP-2021-03, Economic Research Institute for ASEAN and East Asia (ERIA).
    2. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    3. Hausmann, Ricardo & Rodrik, Dani, 2003. "Economic development as self-discovery," Journal of Development Economics, Elsevier, vol. 72(2), pages 603-633, December.
    4. Albornoz, Facundo & Fanelli, Sebastián & Hallak, Juan Carlos, 2016. "Survival in export markets," Journal of International Economics, Elsevier, vol. 102(C), pages 262-281.
    5. Wagner, Rodrigo & Zahler, Andrés, 2015. "New exports from emerging markets: Do followers benefit from pioneers?," Journal of Development Economics, Elsevier, vol. 114(C), pages 203-223.
    6. James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 70(2), pages 317-341.
    7. Artopoulos, Alejandro & Friel, Daniel & Hallak, Juan Carlos, 2013. "Export emergence of differentiated goods from developing countries: Export pioneers and business practices in Argentina," Journal of Development Economics, Elsevier, vol. 105(C), pages 19-35.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Michelle Limenta & Lili Yan Ing, 2022. "Indonesia’s Local Content Requirements: Assessment with WTO Rules," Working Papers DP-2021-47, Economic Research Institute for ASEAN and East Asia (ERIA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Céline Carrère & Vanessa Strauss-Kahn, 2017. "Export survival and the dynamics of experience," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 153(2), pages 271-300, May.
    2. Hahn, Chin Hee, 2021. "How do Export Pioneers Emerge and How are They Related to Product Creators?," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 43(1), pages 1-27.
    3. Bahar, Dany & Rosenow, Samuel & Stein, Ernesto & Wagner, Rodrigo, 2019. "Export take-offs and acceleration: Unpacking cross-sector linkages in the evolution of comparative advantage," World Development, Elsevier, vol. 117(C), pages 48-60.
    4. Sami Atallah & Ilina Srour, 2014. "The Emergence of Highly Sophisticated Lebanese Exports in the Absence of an Industrial Policy," Working Papers 876, Economic Research Forum, revised Nov 2014.
    5. Tomohiko Inui & Keiko Ito & Daisuke Miyakawa, 2017. "Export Experience, Product Differentiation and Firm Survival in Export Markets," The Japanese Economic Review, Japanese Economic Association, vol. 68(2), pages 217-231, June.
    6. Strauss-Kahn, Vanessa & Carrère, Céline, 2014. "Developing Countries Exports Survival in the OECD: Does Experience Matter?," CEPR Discussion Papers 10059, C.E.P.R. Discussion Papers.
    7. Ricardo A. López, 2009. "Do Firms Increase Productivity in Order to Become Exporters?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 71(5), pages 621-642, October.
    8. Wei, Shang-Jin & Wei, Ziru & Xu, Jianhuan, 2021. "On the market failure of “missing pioneers”," Journal of Development Economics, Elsevier, vol. 152(C).
    9. Alonso Alfaro-Ureña & Isabela Manelici & Jose P Vasquez, 2022. "The Effects of Joining Multinational Supply Chains: New Evidence from Firm-to-Firm Linkages," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 137(3), pages 1495-1552.
    10. Timoshenko, Olga A., 2015. "Learning versus sunk costs explanations of export persistence," European Economic Review, Elsevier, vol. 79(C), pages 113-128.
    11. Shang-Jin Wei & Ziru Wei & Jianhuan Xu, 2017. "Sizing up Market Failures in Export Pioneering Activities," NBER Working Papers 23893, National Bureau of Economic Research, Inc.
    12. Qi, Jianhong & Zhang, Zhaoyong & Liu, Hui, 2018. "Credit constraints and firm market entry decision: Firm-level evidence from internationalizing Chinese multinationals," The North American Journal of Economics and Finance, Elsevier, vol. 46(C), pages 272-285.
    13. Armando Silva & Óscar Afonso & Ana Paula Africano, 2010. "Do Portuguese manufacturing firms self select to exports?," FEP Working Papers 371, Universidade do Porto, Faculdade de Economia do Porto.
    14. Artopoulos, Alejandro & Friel, Daniel & Hallak, Juan Carlos, 2013. "Export emergence of differentiated goods from developing countries: Export pioneers and business practices in Argentina," Journal of Development Economics, Elsevier, vol. 105(C), pages 19-35.
    15. Redha Fares & Amélie Guillin & Claude Mathieu, 2020. "Failing and exporting firms: a paradox?," Erudite Working Paper 2020-08, Erudite.
    16. Wei, Shang-Jin & Wei, Ziru, 2014. "Assessing Market Failures in Export Pioneering Activities: A Structural Estimation Approach," CEPR Discussion Papers 10187, C.E.P.R. Discussion Papers.
    17. Wim Naudé & Martin Cameron, 2021. "Export-Led Growth after COVID-19: The Case of Portugal," Notas Económicas, Faculty of Economics, University of Coimbra, issue 52, pages 7-53, July.
    18. Tomasz Serwach, 2012. "Why Learning by Exporting May Not Be As Common As You Think and What It Means for Policy," International Journal of Management, Knowledge and Learning, International School for Social and Business Studies, Celje, Slovenia, vol. 1(2), pages 157-172.
    19. Filippo Bontadini, 2019. "Power and Export Sophistication in Buyer-Supplier Relationships: Insights from Colombian Customs Data," SPRU Working Paper Series 2019-11, SPRU - Science Policy Research Unit, University of Sussex Business School.
    20. Juan de Lucio & Raúl Mínguez & Asier Minondo & Francisco Requena, 2018. "Benefits of forced experimentation on exports," Working Papers 1812, Department of Applied Economics II, Universidad de Valencia.

    More about this item

    Keywords

    Plant-product-level data; export pioneers; export followers; survival;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:era:wpaper:dp-2021-46. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ranti Amelia (email available below). General contact details of provider: https://edirc.repec.org/data/eriadid.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.