Publication: Reassessing the link between firm size and exports
Authors
Hernández Martínez, Pedro Jesús
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Publisher
Springer
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DOI
https://doi.org/10.1007/s40821-019-00126-9
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info:eu-repo/semantics/article
Description
© 2019 Eurasia Business and Economics Society. This document is the Published Manuscript version of a Published Work that appeared in final form in Eurasian Business Review. To access the final edited and published work see https://doi.org/10.1007/s40821-019-00126-9
Abstract
This paper re-examines the link between firm size and exports. The new theories of
international trade emphasize firm heterogeneity as the theoretical basis of export
behavior. In the context of this heterogeneity, this paper uses the quantile regression
methodology to analyze the effects of firm size on firm export propensity (percentage
of exported sales). The paper confirms the existence of a positive relationship
between firm size and export propensity but finds that the conventional estimates
of the elasticity of export propensity with respect to firm size on the average of the
export propensities’ distribution underestimate the effect at the bottom of the distribution
and overestimate the effect on the rest. Consequently, policies aimed at
increasing exports should focus their efforts on increasing the size of those firms
with a lower export propensity.
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Citation
Eurasian Business Review, 2020, Vol. 10, N. 2, pp. 207-223
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