Firms’ export decisions: self-selection versus trial-and-error

Firms export decisions

Firmsメ export decisionsラfixed trade costs and the size of the export market

This article presents a model of international trade under monopolistic competition. In the increasing returns sector firms face fixed, in addition to variable, trade costs, and both exporters and non-exporters may coexist. Exporters benefit from access to large foreign markets, thus a small country has a higher share of exporting firms than a large one. In contrast to standard models, the incr...

Selection Processes: Firms versus Capabilities

Evolutionary theory discusses the exits of organizations from environments that they do not fit, but most work underemphasizes the distinction between business acquisition and dissolution as selection processes. We address this gap by investigating how the presence of organizational capabilities affects whether struggling firms exit by acquisition or dissolution. The study, which bridges adapta...

Self-Selection and Screening in Law Firms

This paper develops a framework to analyze the implications of a model where workers with heterogeneous effort costs choose between firms with alternate promotion policies. In one path, the worker faces strict up-or-out rules that potentially destroy valuable firm specific human capital. The other allows for the possibility of permanent employment without promotion. A costly investment, in the ...

Why Some Firms Export

This paper presents a dynamic model of the export decision by a profit-maximizing firm. Using a panel of U.S. manufacturing plants, we test for the role of plant characteristics, spillovers from neighboring exporters, entry costs and government export promotion expenditures. Entry and exit in the export market by U.S. plants is substantial, past exporters are apt to reenter, and plants are like...