Survival Is for the Fittest : Export Survival Patterns in Georgia
This paper analyzes the determinants of export flow survival in Georgia. The paper uses a unique Georgian firm-level data set, in which firms' characteristics and output dynamics are matched with their customs' export transactions, for th...
| Main Authors: | , |
|---|---|
| Format: | Publications & Research |
| Language: | English en_US |
| Published: |
World Bank Group, Washington, DC
2015
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2015/01/23775406/survival-fittest-export-survival-patterns-georgia http://hdl.handle.net/10986/21380 |
| Summary: | This paper analyzes the determinants of
export flow survival in Georgia. The paper uses a unique
Georgian firm-level data set, in which firms'
characteristics and output dynamics are matched with their
customs' export transactions, for the period 2006-12. A
discrete survival model is used to explore the role of firm
level characteristics, diversification strategies, and
network effects on the survival rates of export flows. Low
survival rates at the product level are found to limit the
ability of Georgian firms to consolidate new products in
international markets. The analysis finds that it is
production efficiency, rather than size, that boosts export
survival chances, that firms diversification strategies
matter for the prospects of survival, and that there is
strong evidence of network effects in export survival. The
analysis also finds that ratified foreign trade agreements
contribute to increase the survival of export flows by
reducing policy-induced trading costs and increasing
information about destination markets. |
|---|