Entrepreneurship and the Extensive Margin in Export Growth : A Microeconomic Accounting of Costa Rica’s Export Growth during 1997-2007

creativeworkseries.issn 1564-698X Lederman, Daniel Rodríguez-Clare, Andrés Yi Xu, Daniel 2013-05-21T16:34:27Z 2013-05-21T16:34:27Z 2011-10-18
dc.description.abstract Successful exporting countries are often seen as successful economies. This paper studies the role of new exporting entrepreneurs – defined as firms that became exporters – in determining export growth in a fast growing and export oriented middle-income country i.e., Costa Rica during 1997-2007. It provides a detailed description of the contribution of export entrepreneurs in the short and long run, and comparing the observed patterns with an emerging literature on the role of the “extensive” margin in international trade. On a year-by-year basis, the rate of firm turnover into and out of exporting is high, but exit rates decline rapidly with age (i.e., the number of years the firm has been exporting). On average, about 30 percent of firms in each year tend to exit export activities, and a similar percentage of firms enter. The exiting and entering firms tend to be significantly smaller than incumbent firms in terms of export value (e.g., entrants export about 30 percent less on average than incumbent firms). These findings are consistent with existing evidence for other middle income Latin American countries. However, in the long run new product-firm combinations (i.e., product-firm combinations not present in 1997) account for almost 60 percent of the value of exports in 2007. Surviving new exporters actively adopted new products (for the firm, but not necessarily new for the country) and abandoned weaker existing products they start with, and their export growth rates were very high during a period (1999-2005) when those of incumbent exporting firms were actually negative. en
dc.identifier.citation World Bank Economic Review
dc.identifier.issn 1564-698X
dc.identifier.other doi:10.1093/wber/lhr031
dc.language.iso en_US
dc.publisher World Bank
dc.relation.ispartofseries World Bank Economic Review
dc.rights CC BY-NC-ND 3.0 IGO
dc.rights.holder World Bank
dc.subject brand
dc.subject Competitiveness
dc.subject Export Growth
dc.subject export market
dc.subject export value
dc.subject exporters
dc.subject fair
dc.subject Gross Domestic Product
dc.subject international trade
dc.subject Market Access
dc.subject merchandise
dc.subject merchandise export
dc.subject merchandise exports
dc.subject Producer Price
dc.subject Producer Price Index
dc.subject Purchasing
dc.subject sales
dc.subject third markets
dc.subject Total Sales
dc.subject turnover
dc.title Entrepreneurship and the Extensive Margin in Export Growth : A Microeconomic Accounting of Costa Rica’s Export Growth during 1997-2007 en
dc.type Journal Article en
dc.type Article de journal fr
dc.type Artículo de revista es
dspace.entity.type Publication
dspace.entity.type Publication 2013-04-18
okr.doctype Journal Article
okr.globalpractice Macroeconomics and Fiscal Management
okr.globalpractice Transport and ICT
okr.globalpractice Poverty
okr.globalpractice Finance and Markets
okr.globalpractice Governance
okr.globalpractice Finance and Markets
okr.globalpractice Trade and Competitiveness
okr.globalpractice Water
okr.identifier.doi 10.1093/wber/lhr031
okr.journal.nbpages 543-561
okr.language.supported en
okr.peerreview Academic Peer Review Costa Rica
okr.topic Finance and Financial Sector Development :: Microfinance
okr.topic International Economics and Trade :: Export Competitiveness
okr.topic International Economics and Trade :: Free Trade
okr.topic Law and Development :: Tax Law
okr.topic Macroeconomics and Economic Growth :: Economic Theory & Research
okr.topic Macroeconomics and Economic Growth :: Markets and Market Access
okr.topic Poverty Reduction :: Pro-Poor Growth
okr.topic Private Sector Development :: Emerging Markets
okr.topic Transport :: Airports and Air Services
okr.topic Water Resources :: Water and Industry
okr.volume 25(3)
relation.isAuthorOfPublication 2c812f70-403a-5905-88e4-bd90a5f31e96
relation.isJournalIssueOfPublication baa25a54-0559-4483-ae13-74491dd867b4
relation.isJournalOfPublication c41eae2f-cf94-449d-86b7-f062aebe893f
relation.isJournalVolumeOfPublication e0142101-3f2f-4335-8ea0-6dbed470dc64
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