Determinants of Export Survival in the Lao PDR
This paper explores a rich dataset of monthly firm-level data on the population of exporters of Lao PDR from 2005 to 2010. The survival analysis uses a discrete-time logistic model based on firm-product-destination triplets while accounting for...
| Main Authors: | , , |
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2013/01/17136761/determinants-export-survival-lao-pdr http://hdl.handle.net/10986/12196 |
| Summary: | This paper explores a rich dataset of
monthly firm-level data on the population of exporters of
Lao PDR from 2005 to 2010. The survival analysis uses a
discrete-time logistic model based on
firm-product-destination triplets while accounting for
unobserved heterogeneity. It looks in detail at the role
played by two important and related determinants of
survival: experience and networks. These are particularly
relevant for developing countries, where relevant export
experience in firms is likely to be limited and networks
leveraging it all the more important. The analysis reveals
the positive impact of having prior experience with the
export product and destination, experience with importing,
as well as using a developed neighboring country as launch
platform. Networks are found to be most relevant when they
are most specific -- the largest impact comes from province
level aggregations of firms selling the same product in the
same market during a particular month. A competing risks
model was also investigated to discern the impact of these
determinants on the likelihood of experiencing an upgrade to
a superior product versus termination when a trade contract ends. |
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