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

Show simple item record

collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
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.date.lastModified
2017-12-14T04:15:00Z
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
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.googlescholar.linkpresent
yes
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

Show simple item record



This item appears in the following Collection(s)