Entrepreneurship and the Extensive Margin in Export Growth : A Microeconomic Accounting of Costa Rica’s Export Growth during 1997–2007
The literature on the correlation between exports and economic development runs deep into the history of economic thought and permeates policy debates. This paper studies the microeconomic structure of export growth in Costa Rica, with special emph...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100722112111 http://hdl.handle.net/10986/3860 |
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okr-10986-38602021-04-23T14:02:13Z Entrepreneurship and the Extensive Margin in Export Growth : A Microeconomic Accounting of Costa Rica’s Export Growth during 1997–2007 Lederman, Daniel Rodríguez-Clare, Andrés Yi Xu, Daniel BASE YEAR CENTRAL BANK CLASSICAL ECONOMISTS COMPETITIVENESS ECONOMIC PERFORMANCE ECONOMIC RESEARCH ENTREPRENEURSHIP EXPANSIONS EXPORT GROWTH EXPORT MARKET EXPORT MARKETS EXPORT PERFORMANCE EXPORTS FINANCIAL CRISIS FIRM SIZE FIRMS GDP GDP PER CAPITA GROSS DOMESTIC PRODUCT GROSS DOMESTIC PRODUCT PER CAPITA GROWTH RATE HISTORY OF ECONOMIC THOUGHT INCOME INCOME GROUPS INTERNATIONAL TRADE MARGINAL COSTS MARKET ACCESS MEDIUM ENTERPRISES MERCHANDISE MERCHANDISE EXPORT MERCHANDISE EXPORTS MICROECONOMIC ANALYSES MULTINATIONAL MULTINATIONAL CORPORATIONS PRODUCER PRICE PRODUCER PRICE INDEX PURCHASING PURCHASING POWER RANGE RIGHT-HAND SIDE ROUGH SALES SMALL FIRMS STRUCTURAL CHANGE THIRD MARKETS TURNOVER WAGES WORLD TRADE ORGANIZATION WTO The literature on the correlation between exports and economic development runs deep into the history of economic thought and permeates policy debates. This paper studies the microeconomic structure of export growth in Costa Rica, with special emphasis on the extensive margin of trade, encompassing new exporting firms, new products, and new export markets, as well as the unit values of new versus incumbent products. The data suggest that few new firms survive the test of exporting -- more than 40 percent of firms exit export activities after one year -- and this firm turnover is associated with a steady deterioration of export unit values (prices). Furthermore, most new export products are associated with product switching by incumbent exporting firms. The typical new product introduced by incumbent firms tended to be priced at about 90 percent of the unit values of incumbent products. In contrast, the usual suspected obstacles to export growth, such as the inability of small firms to enter exporting activities or to grow their exports, appear to be important sources of export growth. In fact, the smallest exporting firms experienced the fastest growth in their export values. Some of these results are compared with those from other countries that have been examined in related literature. 2012-03-19T18:41:06Z 2012-03-19T18:41:06Z 2010-07-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100722112111 http://hdl.handle.net/10986/3860 English Policy Research working paper ; no. WPS 5376 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Latin America & Caribbean Latin America & Caribbean Central America America Costa Rica |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
BASE YEAR CENTRAL BANK CLASSICAL ECONOMISTS COMPETITIVENESS ECONOMIC PERFORMANCE ECONOMIC RESEARCH ENTREPRENEURSHIP EXPANSIONS EXPORT GROWTH EXPORT MARKET EXPORT MARKETS EXPORT PERFORMANCE EXPORTS FINANCIAL CRISIS FIRM SIZE FIRMS GDP GDP PER CAPITA GROSS DOMESTIC PRODUCT GROSS DOMESTIC PRODUCT PER CAPITA GROWTH RATE HISTORY OF ECONOMIC THOUGHT INCOME INCOME GROUPS INTERNATIONAL TRADE MARGINAL COSTS MARKET ACCESS MEDIUM ENTERPRISES MERCHANDISE MERCHANDISE EXPORT MERCHANDISE EXPORTS MICROECONOMIC ANALYSES MULTINATIONAL MULTINATIONAL CORPORATIONS PRODUCER PRICE PRODUCER PRICE INDEX PURCHASING PURCHASING POWER RANGE RIGHT-HAND SIDE ROUGH SALES SMALL FIRMS STRUCTURAL CHANGE THIRD MARKETS TURNOVER WAGES WORLD TRADE ORGANIZATION WTO |
| spellingShingle |
BASE YEAR CENTRAL BANK CLASSICAL ECONOMISTS COMPETITIVENESS ECONOMIC PERFORMANCE ECONOMIC RESEARCH ENTREPRENEURSHIP EXPANSIONS EXPORT GROWTH EXPORT MARKET EXPORT MARKETS EXPORT PERFORMANCE EXPORTS FINANCIAL CRISIS FIRM SIZE FIRMS GDP GDP PER CAPITA GROSS DOMESTIC PRODUCT GROSS DOMESTIC PRODUCT PER CAPITA GROWTH RATE HISTORY OF ECONOMIC THOUGHT INCOME INCOME GROUPS INTERNATIONAL TRADE MARGINAL COSTS MARKET ACCESS MEDIUM ENTERPRISES MERCHANDISE MERCHANDISE EXPORT MERCHANDISE EXPORTS MICROECONOMIC ANALYSES MULTINATIONAL MULTINATIONAL CORPORATIONS PRODUCER PRICE PRODUCER PRICE INDEX PURCHASING PURCHASING POWER RANGE RIGHT-HAND SIDE ROUGH SALES SMALL FIRMS STRUCTURAL CHANGE THIRD MARKETS TURNOVER WAGES WORLD TRADE ORGANIZATION WTO Lederman, Daniel Rodríguez-Clare, Andrés Yi Xu, Daniel Entrepreneurship and the Extensive Margin in Export Growth : A Microeconomic Accounting of Costa Rica’s Export Growth during 1997–2007 |
| geographic_facet |
Latin America & Caribbean Latin America & Caribbean Central America America Costa Rica |
| relation |
Policy Research working paper ; no. WPS 5376 |
| description |
The literature on the correlation
between exports and economic development runs deep into the
history of economic thought and permeates policy debates.
This paper studies the microeconomic structure of export
growth in Costa Rica, with special emphasis on the extensive
margin of trade, encompassing new exporting firms, new
products, and new export markets, as well as the unit values
of new versus incumbent products. The data suggest that few
new firms survive the test of exporting -- more than 40
percent of firms exit export activities after one year --
and this firm turnover is associated with a steady
deterioration of export unit values (prices). Furthermore,
most new export products are associated with product
switching by incumbent exporting firms. The typical new
product introduced by incumbent firms tended to be priced at
about 90 percent of the unit values of incumbent products.
In contrast, the usual suspected obstacles to export growth,
such as the inability of small firms to enter exporting
activities or to grow their exports, appear to be important
sources of export growth. In fact, the smallest exporting
firms experienced the fastest growth in their export values.
Some of these results are compared with those from other
countries that have been examined in related literature. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Lederman, Daniel Rodríguez-Clare, Andrés Yi Xu, Daniel |
| author_facet |
Lederman, Daniel Rodríguez-Clare, Andrés Yi Xu, Daniel |
| author_sort |
Lederman, Daniel |
| title |
Entrepreneurship and the Extensive Margin in Export Growth : A Microeconomic Accounting of Costa Rica’s Export Growth during 1997–2007 |
| title_short |
Entrepreneurship and the Extensive Margin in Export Growth : A Microeconomic Accounting of Costa Rica’s Export Growth during 1997–2007 |
| title_full |
Entrepreneurship and the Extensive Margin in Export Growth : A Microeconomic Accounting of Costa Rica’s Export Growth during 1997–2007 |
| title_fullStr |
Entrepreneurship and the Extensive Margin in Export Growth : A Microeconomic Accounting of Costa Rica’s Export Growth during 1997–2007 |
| title_full_unstemmed |
Entrepreneurship and the Extensive Margin in Export Growth : A Microeconomic Accounting of Costa Rica’s Export Growth during 1997–2007 |
| title_sort |
entrepreneurship and the extensive margin in export growth : a microeconomic accounting of costa rica’s export growth during 1997–2007 |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100722112111 http://hdl.handle.net/10986/3860 |
| _version_ |
1764388712690483200 |