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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