Export growth and firm survival

This paper uses plant-level data from Chile to show that an increase in sector-wide exports decreases the survival probability of exporters, but not that of non-exporters. We argue that this result can be explained by the fact that exporters and non-exporters use factors of production in different i...

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Bibliographic Details
Published in:Economics letters 2013-09, Vol.120 (3), p.481-486
Main Authors: Emami Namini, Julian, Facchini, Giovanni, López, Ricardo A.
Format: Article
Language:English
Subjects:
Chile
Economic theory
Exporters
Exports
Firm heterogeneity in factor intensities
Firm survival
Latin America
Manufacturing sectors
Probability
Production
Production functions
Studies
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Summary:This paper uses plant-level data from Chile to show that an increase in sector-wide exports decreases the survival probability of exporters, but not that of non-exporters. We argue that this result can be explained by the fact that exporters and non-exporters use factors of production in different intensities. •Effect of change in aggregate exports on survival probability.•Plant-level data from Chile are used.•Increase in aggregate exports decreases the probability of survival of exporters.•Increase in aggregate exports does not affect the probability of survival of non-exporters.•This result may be due to the fact that exporters and non-exporters use factors of production in different proportions.
ISSN:0165-1765
1873-7374
DOI:10.1016/j.econlet.2013.05.025