Dalgic_Fazlioglu_Gasiorek_revised_version_April2015.pdf (588.88 kB)
Costs of trade and self-selection into exporting and importing: the case of Turkish manufacturing firms
journal contribution
posted on 2023-06-08, 21:37 authored by Basak Dalgic, Burcu Fazlioglu, Michael GasiorekMichael GasiorekThis paper focuses on self-selection into trade by exporting and importing firms, and on the presence of differential variable and sunk costs between exporters and importers across different categories of imports. We use a rich and recent dataset for Turkish manufacturing firms for the period 2003-10.This allows us to provide a comprehensive analysis of firm heterogeneity and the connection between firm-level performance and international trade. We provide evidence on the remarkable heterogeneity across firms where only-importers (importers) perform better than only-exporters (exporters). We detect a self-selection effect for both importing and exporting firms with a stronger effect for importers. The results suggest that the nature of sunk costs varies between importing and exporting activities with importers facing higher sunk costs. Tari§s represent a potentially important source of variation in the variable costs of trading. When taking the tariffs faced by firms into account, we find that the self-selection effect associated with sunk costs is still present but greatly reduced with a smaller reduction for importers compared to exporters.
History
Publication status
- Published
File Version
- Accepted version
Journal
EconomicsISSN
1864-6042Publisher
EconomicsIssue
15Page range
1-28Department affiliated with
- Economics Publications
Notes
Published in Special Issue Micro-econometric Analyses of International Firm ActivitiesFull text available
- Yes
Peer reviewed?
- Yes
Legacy Posted Date
2015-07-14First Open Access (FOA) Date
2015-07-14First Compliant Deposit (FCD) Date
2015-07-14Usage metrics
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