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Export Survival in Global Production Chains

Authors: Díaz Mora, María del Carmen; Córcoles González, David; Gandoy Juste, Rosario;

Export Survival in Global Production Chains

Abstract

AbstractIn this paper, we examine the survival capacity of trade relationships in cross‐border production chains. Our main contribution is to show that there are differences in the probability of export interruption between intermediate and final stages along the global value chain, finding a lower sensitivity of intermediate goods to the increasing competition from lower‐income countries. In addition, the paper also makes a methodological contribution by using time‐discrete duration models with product‐country random effects to control for unobservable heterogeneity and by including interactions in the model, in order to identify the sources of these differences. Our estimates show that variables such asEUmembership, export experience, product and market diversification, initial trade value, destination market size, geographical proximity and economic proximity reduce the likelihood of export failure more for intermediate than for final goods, being the differential impact particularly higher for the two first variables. These results would suggest that factors that reduce uncertainty and search costs and increase trust and reliability among production partners are particularly relevant for intermediate stages, fostering the probability of remaining an active member of global production chains.

Country
Spain
Related Organizations
Keywords

Redes internacionales de producción, International Production Networks, Export Survival, Modelos de duración discreta, Supervivencia de exportación, Time-Discrete Duration Models

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    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Top 10%
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
24
Top 10%
Top 10%
Top 10%
Green
hybrid