Publication:
Exporter Dynamics, Firm Size and Growth, and Partial Year Effects

dc.contributor.author Bernard, Andrew B.
dc.contributor.author Massari, Renzo
dc.contributor.author Reyes, Jose-Daniel
dc.contributor.author Taglioni, Daria
dc.date.accessioned 2014-02-04T22:18:24Z
dc.date.available 2014-02-04T22:18:24Z
dc.date.issued 2013-11
dc.description.abstract Two otherwise identical firms that enter the same market in different months, one in January and one in December, will report dramatically different annual sales for the first calendar year of operations. This partial year effect in annual data leads to downward biased observations of the level of activity upon entry and upward biased growth rates between the year of entry and the following year. This paper examines the implications of partial year effects using Peruvian export data. The partial year bias is very large: the average level of first-year exports of new exporters is understated by 65 percent and the average growth rate between the first and second year of exporting is overstated by 112 percentage points. This paper re-examines a number of stylized facts about firm size and growth that have motivated rapidly expanding theoretical and empirical literatures on firm export dynamics. Correcting the partial year effect eliminates unusually high growth rates in the first year of exporting, raises initial export levels, and shifts 10 percent of market entrants from below to above the median size. Revisiting an older set of facts on firm size and growth, the paper finds that correcting for partial year biases reduces the number of small firms in the firm size distribution and weakens the negative relationship between firm growth and firm size. en
dc.identifier http://documents.worldbank.org/curated/en/2013/11/18554162/exporter-dynamics-firm-size-growth-partial-year-effects
dc.identifier.uri http://hdl.handle.net/10986/16902
dc.language English
dc.language.iso en_US
dc.publisher World Bank, Washington, DC
dc.relation.ispartofseries Policy Research Working Paper;No. 6711
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.rights.uri http://creativecommons.org/licenses/by/3.0/igo/
dc.subject ACCESS TO FOREIGN MARKETS
dc.subject ADVERSE SHOCKS
dc.subject ANNUAL GROWTH
dc.subject ANNUAL GROWTH RATE
dc.subject AVERAGE ANNUAL GROWTH
dc.subject AVERAGE GROWTH
dc.subject AVERAGE GROWTH RATE
dc.subject AVERAGE LEVEL
dc.subject BANK POLICY
dc.subject CONSTANT RATE
dc.subject DATA SETS
dc.subject DEVELOPMENT POLICY
dc.subject DOMESTIC MARKET
dc.subject DUMMY VARIABLES
dc.subject ECONOMIC LITERATURE
dc.subject ECONOMIC POLICY
dc.subject ECONOMICS
dc.subject EMPIRICAL LITERATURE
dc.subject EMPIRICAL MODEL
dc.subject EMPIRICAL REGULARITIES
dc.subject EMPIRICAL RESULTS
dc.subject EMPIRICAL WORK
dc.subject EMPLOYMENT
dc.subject ENTREPRENEURS
dc.subject EXPORT GROWTH
dc.subject EXPORT MARKET
dc.subject EXPORT MARKETS
dc.subject EXPORTER
dc.subject EXPORTERS
dc.subject FIRM PERFORMANCE
dc.subject FIRM SIZE
dc.subject FIRM SIZES
dc.subject FIRMS
dc.subject FIRST YEAR
dc.subject FIXED EFFECTS
dc.subject FOREIGN MARKET
dc.subject FOREIGN MARKETS
dc.subject GLOBAL ECONOMY
dc.subject GROWTH PATTERN
dc.subject GROWTH RATES
dc.subject HIGH ENTRY
dc.subject HIGH GROWTH
dc.subject INTERNATIONAL BANK
dc.subject INTERNATIONAL ECONOMICS
dc.subject INTERNATIONAL TRADE
dc.subject MARKET ENTRY
dc.subject MARKET PARTICIPANTS
dc.subject MICRO-DATA
dc.subject OUTPUT GROWTH
dc.subject POLICY RESEARCH
dc.subject POLITICAL ECONOMY
dc.subject POVERTY REDUCTION
dc.subject RAPID GROWTH
dc.subject SALES
dc.subject SMALL FIRMS
dc.subject STANDARD DEVIATION
dc.subject TOTAL OUTPUT
dc.subject TOTAL SALES
dc.subject TRANSACTION
dc.title Exporter Dynamics, Firm Size and Growth, and Partial Year Effects en
dspace.entity.type Publication
okr.date.disclosure 2013-11-01
okr.doctype Publications & Research :: Policy Research Working Paper
okr.doctype Publications & Research
okr.docurl http://documents.worldbank.org/curated/en/2013/11/18554162/exporter-dynamics-firm-size-growth-partial-year-effects
okr.globalpractice Macroeconomics and Fiscal Management
okr.globalpractice Poverty
okr.globalpractice Finance and Markets
okr.globalpractice Finance and Markets
okr.identifier.doi 10.1596/1813-9450-6711
okr.identifier.externaldocumentum 000158349_20131125144748
okr.identifier.internaldocumentum 18554162
okr.identifier.report WPS6711
okr.language.supported en
okr.pdfurl http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/11/25/000158349_20131125144748/Rendered/PDF/WPS6711.pdf en
okr.topic Finance and Financial Sector Development :: Microfinance
okr.topic Macroeconomics and Economic Growth :: Markets and Market Access
okr.topic Finance and Financial Sector Development :: Debt Markets
okr.topic Macroeconomics and Economic Growth :: Economic Growth
okr.topic Poverty Reduction :: Achieving Shared Growth
okr.unit International Trade Unit, Poverty Reduction and Economic Management Network
okr.volume 1 of 1
relation.isAuthorOfPublication ef13906b-18b9-5962-8425-18d99f82c093
relation.isSeriesOfPublication 26e071dc-b0bf-409c-b982-df2970295c87
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