- Title
- Firm Export Dynamics in Interdependent Markets
- Author(s)
- Alonso Alfaro-Ureña Alonso Alfaro-Ureña (Banco Central de Costa Rica and Universidad de Costa Rica)
- Juanma Castro-Vincenzi Juanma Castro-Vincenzi (Harvard University)
- Sebastián Fanelli Sebastián Fanelli (CEMFI)
- Eduardo Morales Eduardo Morales (Princeton University)
- Abstract
- We estimate a model of firm export dynamics featuring cross-country complementarities. The firm decides where to export by solving a dynamic combinatorial discrete choice problem, for which we develop a solution algorithm that overcomes the computational challenges inherent to the large dimensionality of its state space and choice set. According to our estimated model, firms enjoy cost reductions when exporting to countries geographically or linguistically close to each other, or that share deep trade agreements; and countries, especially small ones, sharing these traits with attractive destinations receive significantly more exports than in the absence of complementarities.
- Creation Date
- 2023-08
- Section URL ID
- Paper Number
- 2023-18
- URL
- https://drive.google.com/file/d/1LTti9pvcQoyg_2oRs_sLXMlX4-D7kAWK/view
- File Function
- Jel
- F12, F13, F14.
- Keyword(s)
- export dynamics, integer programming problem, deep free trade agreements
- Suppress
- false
- Series
- 13