Firm-level export duration : the importance of market-specific ownership linkages

Kostevc, Črt (author), Zajc Kejžar, Katja (author)

This paper explores the impact of a firm’s market-specific ownership linkages and trade complementarities on different dimensions of its exporting longevity. Unlike previous studies that were mostly based on country-product level data, this paper uses transaction-level trade data on the population of firms in Slovenia in the 2002–2011 period, matched with detailed origin/direction of inward/outward FDI information to determine a firm’s integration in international production networks. Our results indicate that firm’s bilateral inward and outward FDI flows with an export-destination country have a strong positive effect on a firm’s export survival in that market. Importance of market-specific ownership linkages for export duration is exclusively driven by intermediate goods which suggests prolonged export duration through production network involvement. However, the perseverance effect of bilateral FDI ties on export spells has been weakened during the crisis period. We find pronounced market- and product-related trade complementarities as either exporting or importing experience with the relevant market/product substantially improves the chances of a product-market export spell continuing. Finally, the risk of exports termination is lower for a firm’s core export products.

• Language: English
• Keywords: entrepreneurship, ownership, exports
• Work type: Article
• Typology: 1.01 - Original Scientific Article
• Organization: EF - School of Economics and Business
• Publication version: Author Accepted Manuscript
• Year: 2020
• Number of pages: Str. 1277-1308
• Numbering: Vol. 43, iss. 5
• PID: 20.500.12556/RUL-114118
• UDC: 339.5
• ISSN on article: 0378-5920
• DOI: 10.1111/twec.12939
• COBISS.SI-ID: 25515494
• Publication date in RUL: 18.02.2020

Record is a part of a journal

• Title: The world economy
• Shortened title: World econ.
• Publisher: Wiley
• ISSN: 0378-5920
• COBISS.SI-ID: 26642176

Secondary language

• Language: Slovenian
• Keywords: podjetništvo, lastništvo, izvoz

Projects

• Funder: ARRS - Slovenian Research Agency
• Project number: J5-6815
• Name: Determinante in učinki pozicioniranja slovenskih podjetij v globalnih verigah vrednosti