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

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dc.contributor.authorBernard, Andrew B.
dc.contributor.authorMassari, Renzo
dc.contributor.authorReyes, Jose-Daniel
dc.contributor.authorTaglioni, Daria
dc.date.accessioned2014-02-04T22:18:24Z
dc.date.available2014-02-04T22:18:24Z
dc.date.issued2013-11
dc.description.abstractTwo 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.identifierhttp://documents.worldbank.org/curated/en/2013/11/18554162/exporter-dynamics-firm-size-growth-partial-year-effects
dc.identifier.doi10.1596/1813-9450-6711
dc.identifier.urihttps://hdl.handle.net/10986/16902
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 6711
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCESS TO FOREIGN MARKETS
dc.subjectADVERSE SHOCKS
dc.subjectANNUAL GROWTH
dc.subjectANNUAL GROWTH RATE
dc.subjectAVERAGE ANNUAL GROWTH
dc.subjectAVERAGE GROWTH
dc.subjectAVERAGE GROWTH RATE
dc.subjectAVERAGE LEVEL
dc.subjectBANK POLICY
dc.subjectCONSTANT RATE
dc.subjectDATA SETS
dc.subjectDEVELOPMENT POLICY
dc.subjectDOMESTIC MARKET
dc.subjectDUMMY VARIABLES
dc.subjectECONOMIC LITERATURE
dc.subjectECONOMIC POLICY
dc.subjectECONOMICS
dc.subjectEMPIRICAL LITERATURE
dc.subjectEMPIRICAL MODEL
dc.subjectEMPIRICAL REGULARITIES
dc.subjectEMPIRICAL RESULTS
dc.subjectEMPIRICAL WORK
dc.subjectEMPLOYMENT
dc.subjectENTREPRENEURS
dc.subjectEXPORT GROWTH
dc.subjectEXPORT MARKET
dc.subjectEXPORT MARKETS
dc.subjectEXPORTER
dc.subjectEXPORTERS
dc.subjectFIRM PERFORMANCE
dc.subjectFIRM SIZE
dc.subjectFIRM SIZES
dc.subjectFIRMS
dc.subjectFIRST YEAR
dc.subjectFIXED EFFECTS
dc.subjectFOREIGN MARKET
dc.subjectFOREIGN MARKETS
dc.subjectGLOBAL ECONOMY
dc.subjectGROWTH PATTERN
dc.subjectGROWTH RATES
dc.subjectHIGH ENTRY
dc.subjectHIGH GROWTH
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL ECONOMICS
dc.subjectINTERNATIONAL TRADE
dc.subjectMARKET ENTRY
dc.subjectMARKET PARTICIPANTS
dc.subjectMICRO-DATA
dc.subjectOUTPUT GROWTH
dc.subjectPOLICY RESEARCH
dc.subjectPOLITICAL ECONOMY
dc.subjectPOVERTY REDUCTION
dc.subjectRAPID GROWTH
dc.subjectSALES
dc.subjectSMALL FIRMS
dc.subjectSTANDARD DEVIATION
dc.subjectTOTAL OUTPUT
dc.subjectTOTAL SALES
dc.subjectTRANSACTION
dc.titleExporter Dynamics, Firm Size and Growth, and Partial Year Effectsen
dspace.entity.typePublication
okr.crossref.titleExporter Dynamics, Firm Size and Growth, and Partial Year Effects
okr.date.disclosure2013-11-01
okr.date.doiregistration2025-04-10T11:42:34.857836Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2013/11/18554162/exporter-dynamics-firm-size-growth-partial-year-effects
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticePoverty
okr.globalpracticeFinance and Markets
okr.globalpracticeFinance and Markets
okr.guid236951468159908830
okr.identifier.doi10.1596/1813-9450-6711
okr.identifier.externaldocumentum000158349_20131125144748
okr.identifier.internaldocumentum18554162
okr.identifier.reportWPS6711
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/11/25/000158349_20131125144748/Rendered/PDF/WPS6711.pdfen
okr.topicFinance and Financial Sector Development::Microfinance
okr.topicMacroeconomics and Economic Growth::Markets and Market Access
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicMacroeconomics and Economic Growth::Economic Growth
okr.topicPoverty Reduction::Achieving Shared Growth
okr.unitInternational Trade Unit, Poverty Reduction and Economic Management Network
okr.volume1 of 1
relation.isAuthorOfPublicationef13906b-18b9-5962-8425-18d99f82c093
relation.isAuthorOfPublication.latestForDiscoveryef13906b-18b9-5962-8425-18d99f82c093
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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