Publication:
Import Uncertainty and Export Dynamics

creativeworkseries.issn1564-698X
dc.contributor.authorVijil, Mariana
dc.contributor.authorWagner, Laurent
dc.contributor.authorWoldemichael, Martha Tesfaye
dc.date.accessioned2024-04-01T20:17:53Z
dc.date.available2024-04-01T20:17:53Z
dc.date.issued2023-12-18
dc.description.abstractA supply chain is only as strong as its weakest link. Firms are constantly managing uncertainties, including unexpected delays in the provision of a critical input that can slow down or halt the production process, possibly making the manufacturer miss a delivery deadline. As most exporters are also importers of intermediate goods, supply chain unreliability related to import processing times at the border could impact downstream export dynamics. The role of unpredictability in border-clearance times for imports in manufacturing firms’ entry, exit, and survival in export markets is investigated using the PPML estimator on a rich dataset built on firm level information for 48 developing countries over 2006–2014. Uncertainty in the time to clear imported inputs impacts neither the entry nor the exit rate, but translates into lower survival rates for new exporters, reducing the number of firms that continue serving the foreign market beyond their first year of entry. This effect grows larger over time, owing to rising reputational costs to input-importing exporters and is mainly driven by South-North trade, possibly reflecting the time-sensitivity of buyers in developed countries. Results also reveal heterogeneous effects across export industries, and the mediating role of sunk costs of entry in foreign markets, which attenuate the negative effect of uncertainty on survival rates as firms delay exiting the export market.en
dc.identifierhttp://documents.worldbank.org/curated/en/099157402022412162/IDU1427e1d101b4c214dda194aa1a33be14e3b93
dc.identifier.citationThe World Bank Economic Review
dc.identifier.doi10.1596/41343
dc.identifier.issn0258-6770 (print)
dc.identifier.issn1564-698X (online)
dc.identifier.urihttps://hdl.handle.net/10986/41343
dc.languageEnglish
dc.language.isoen_US
dc.publisherPublished by Oxford University Press on behalf of the World Bank
dc.relation.ispartofseriesWorld Bank Economic Review
dc.rightsCC BY-NC-ND 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/3.0/igo/
dc.subjectEXPORT DYNAMICS
dc.subjectIMPORT UNCERTAINTY
dc.subjectSUPPLY CHAIN UNRELIABILITY
dc.subjectCUSTOMS
dc.subjectTRADE COSTS
dc.subjectFIRMS
dc.titleImport Uncertainty and Export Dynamicsen
dc.typeJournal Article
dspace.entity.typePublication
okr.associatedcontenthttps://academic.oup.com/wber/article/38/1/24/7477286 Journal website (version of record)
okr.crossref.titleImport Uncertainty and Export Dynamics
okr.date.disclosure2024-04-01
okr.date.lastmodified2024-02-02T00:00:00Zen
okr.doctypeJournal Article
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099157402022412162/IDU1427e1d101b4c214dda194aa1a33be14e3b93
okr.guid099157402022412162
okr.identifier.docmidIDU-427e1d10-b4c2-4dda-94aa-a33be14e3b93
okr.identifier.doi10.1093/wber/lhad043
okr.identifier.doihttps://doi.org/10.1596/41343
okr.identifier.externaldocumentum34250844
okr.identifier.internaldocumentum34250844
okr.identifier.report187525
okr.import.id3739
okr.importedtrueen
okr.language.supporteden
okr.pagenumber24-50
okr.pdfurlhttp://documents.worldbank.org/curated/en/099157402022412162/pdf/IDU1427e1d101b4c214dda194aa1a33be14e3b93.pdfen
okr.peerreviewAcademic Peer Review
okr.region.geographicalWorld
okr.topicInternational Economics and Trade::Trade Policy
okr.topicInternational Economics and Trade::Export Competitiveness
okr.topicInternational Economics and Trade::Customs and Trade
okr.unitEFI-EAP-FCI-Finance-2 (EEAF2)
okr.volume38 (1)
relation.isJournalIssueOfPublication1585dc00-eb69-435e-b7d2-cc9fff48d2e3
relation.isJournalIssueOfPublication.latestForDiscovery1585dc00-eb69-435e-b7d2-cc9fff48d2e3
relation.isJournalOfPublicationc41eae2f-cf94-449d-86b7-f062aebe893f
relation.isJournalVolumeOfPublicatione61ff3e4-3429-4e9a-9ad1-6f7798ddae5b
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