Department of Economics and Business Economics

Eliane Choquette

Inward-outward linkages in the internationalization process of firms: Their impact on export survival

Research output: Contribution to conferencePaperResearch

This study provides a new angle as to how firms’ importing activities influence their export activities by looking at survival in individual export markets. Duration models on a panel of Danish exporters in the manufacturing sector are used to investigate this relationship. The results reveal, on the one hand, that firms with importing experience from a specific market prior to initiating exports to this market have a shorter export spell. This in line with the thesis that prior importing experience facilitates firms’ outward internationalization by reducing the sunk costs associated with export market entry and that export survival is negatively correlated with these sunk costs. Only importing experience within the same market affects (shortens) a firm’s export spell, which also is in line with the argument that a priori import experience reduces firms’ export market specific sunk costs. On the other hand, firms’ current importing activities increase their chance of export survival. This finding is in line with the argument that efficiency gains are experienced by importing firms, enabling them to be more competitive in international markets and thereby being more likely to remain active in these markets. In this case, the origin of imports does not play a role in identifying the positive effect ongoing importing activities have on the chance of survival in a particular export market.
Original languageEnglish
Publication year2014
Publication statusPublished - 2014
EventEuropean Trade Study Group - Munich, Germany
Duration: 11 Sep 2014 → …

Conference

ConferenceEuropean Trade Study Group
CountryGermany
CityMunich
Period11/09/2014 → …

See relations at Aarhus University Citationformats

ID: 81508067