Extended Gravity

• 成果类型: Article
• 署名作者: Morales, Eduardo; Sheu, Gloria; Zahler, Andres
• 署名单位: Princeton University; National Bureau of Economic Research; Center for Economic & Policy Research (CEPR); Leibniz Association; Ifo Institut; University Diego Portales
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdz007
• 发表日期: 2019
• 页码: 2668-2712
• 关键词: sunk costs; wal-mart; export; models; TRADE; inference; Heterogeneity; experience; economies; demand

摘要

Exporting firms often enter foreign markets that are similar to their previous export destinations. We develop a dynamic model in which a firm's exports in a market may depend on how similar the market is to the firm's home country (gravity) and to its previous export destinations (extended gravity). Given the large number of export paths from which forward-looking firms may choose, we use a moment inequality approach to estimate our model. Our estimates indicate that sharing similarities with a prior export destination in terms of geographic location, language, and income per capita jointly reduces the cost of foreign market entry by 69-90%. Reductions due to geographic location (25-38%) and language (29-36%) have the largest effect. Extended gravity thus has a large impact on export entry costs.