Publications

2 Publications found…

• Evidence 27 September 2023

  Export-led growth

  By Mattia Di Ubaldo, Facundo Albornoz, Ingo Borchert, Michael Gasiorek and Minako Morita Jaeger et al.

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  Summary CITP publication

  This submission of evidence to the House of Commons Business and Trade Committee looks at opportunities for exports that can drive UK economic growth; what UK businesses need to increase exports; whether Free Trade Agreements are fit for the future and the adequacy of the Government’s Export Strategy (2021). The authors provide recommendations on how to address these issues.

  Topics

  • Firms and Productivity
  • Regulation and Trade
  • Services trade
  • Trade Agreements

• Academic Paper 25 May 2023

  Sequentially exporting products across countries

  By Facundo Albornoz et al.

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  Summary CITP publication

  Exploiting disaggregated data on French exporters, we show that firms expand their product scope and geographical presence sequentially. This process of internationalization is uneven over time, exhibiting more volatility early than later in the life cycle of exporters. Specifically, young exporters are particularly likely to exit, and if they keep exporting, to expand at the intensive and sub-extensive margins, doing so by widening product scope within a destination before entering new destinations. We also find that firms' core products are particularly resilient despite being used to “test the waters” when entering additional countries. Existing models of firm export dynamics are not designed to explain these empirical regularities. We argue that they can be rationalized by a mechanism where new exporters are uncertain about the profitability of their products in different markets, but learn from their initial export experiences and then adjust their sales, number of products and destination countries accordingly.

  Topics

  • Supply Chains