Entry and Exit in International Markets: Evidence from Chilean Data

Abstract
Several studies examine the patterns and determinants of entry and exit in manufacturing industries. Not much work exists on entry and exit in international markets. This paper uses Chilean data to analyze the determinants of entry and exit in and out of export markets. We find that entry and exit rates differ across industries; vary over time; and are positively correlated. The econometric analysis shows that within-industry heterogeneity, measured by differences in productivity or other firm characteristics, has a significant effect on plant turnover in international markets. Our findings reveal that trade costs, factor intensities, and fluctuations in the real exchange rate play a minor role explaining entry and exit. This last result is consistent with hysteresis in international markets.
Description
Keywords
CAEPR, Center for Applied Economics and Policy Research, Entry, Exit, International Markets, Chile, International Trade
Citation
DOI
Link(s) to data and video for this item
This paper can also be found on RePEc and SSRN.
Relation
Rights
Type
Working Paper