Whatever next? Export market choices of New Zealand firms

Authors


  • Access to the data used in this study was provided by Statistics New Zealand in accordance with security and confidentiality provisions of the Statistics Act 1975 and the Tax Administration Act 1994. The results in this paper have been confidentialized to protect individual businesses from identification. See an earlier version of this paper, Fabling et al. (2009) for the full disclaimer. The authors are solely responsible for the views expressed. The authors wish to thank Statistics New Zealand for access to the data, Jacques Poot for discussions on rare event models, and Motu Economic and Public Policy Research seminar participants and two anonymous referees for valuable suggestions and comments.

Abstract

We examine product and market entry choices of New Zealand exporters, using enterprise-level data on firm performance and merchandise trade. For firms already exporting, we ask: What determines their choices about what and where to export? General and specific prior trade experience play an important role in determining firms' future export activities, as do the export activities of other firms in the local area (a learning effect). These results are robust to the inclusion of other export determinants, including the macroeconomic performance of destination countries, exchange rate movements, and the past performance of the exporting firm.

Resumen. Examinamos las decisiones de inserción de productos y acceso a mercados de los exportadores neozelandeses por medio del empleo de datos a escala de empresa sobre el desempeño de firmas y el comercio de mercancías. Para las empresas que ya están exportando preguntamos: ¿Qué determina su decisión de exportación en cuanto al qué y el dónde? La experiencia comercial previa, genérica y específica, juega un papel importante a la hora de determinar las actividades futuras de exportación de la empresa, así como las actividades de exportación de otras empresas locales (efecto de aprendizaje). Estos resultados son lo suficientemente robustos como para incluir otros determinantes de exportación, incluyendo el comportamiento macroeconómico de los países destinatarios, las fluctuaciones de divisa, y el comportamiento en el pasado de la empresa exportadora.

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