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Dynamics of Export Market Entry and Exit*
Authors:Pekka Ilmakunnas  Satu Nurmi
Abstract:We apply discrete time duration models to explain the duration until new plants start to export and the duration until exit from the export markets, using data on Finnish manufacturing plants. Plants that are large, young, highly productive, and with high‐capital intensity are likely to enter the export market earlier and to survive in the export market longer. Foreign ownership increases chances of export entry, especially for small and low human capital plants, and decreases the risk of export failure for large, high‐productivity plants. The upper and lower tails of the productivity distribution are represented by plants that start exporting and those that are exiting, respectively.
Keywords:Exports  foreign ownership  productivity  human capital  duration analysis  F14  F23  L25
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