publication . Doctoral thesis . 2015

Export Failure and its Consequences: Theory and Evidence

Mora, Jesse;
Open Access English
  • Published: 01 Jan 2015
  • Publisher: eScholarship, University of California
  • Country: Mexico
The purpose of this dissertation is to argue that exporting is a risky endeavor and that there are consequences to export failure. Exporters pay high fixed costs to enter foreign markets, yet the majority will not export beyond one year. What happens to these exporters after they fail abroad? For these firms, exporting likely resulted in heavy profit losses. Despite this, trade literature often views exporting as a harmless exercise based on a simple cost-benefit analysis of foreign profits. This rationale ignores the differential effect export failure may have on financially constrained firms.The first chapter develops a heterogeneous-firm model with financial ...
free text keywords: Economics
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