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Distance Sensitivity of Export: A Firm-Product Level Approach

Jienwatcharamongkhol, Viroj LU (2013) In Journal of Industry, Competition and Trade p.1-24
Abstract
Recent literature suggests that the extent to which exports of a product is influenced by distance depends on the product characteristics. Differentiated products with non-standardised attributes are typically claimed to be more distance-sensitive as transactions should involve interactions between buyers and sellers. But the empirical evidence still finds conflicting results. Previous studies have examined the effect of distance on export values across different product groups. This paper employs a gravity model on Swedish firm-product level export data to analyse the effect of distance on the export decisions as well as export values, respectively. The focus is on how the influence of distance varies across differentiated and... (More)
Recent literature suggests that the extent to which exports of a product is influenced by distance depends on the product characteristics. Differentiated products with non-standardised attributes are typically claimed to be more distance-sensitive as transactions should involve interactions between buyers and sellers. But the empirical evidence still finds conflicting results. Previous studies have examined the effect of distance on export values across different product groups. This paper employs a gravity model on Swedish firm-product level export data to analyse the effect of distance on the export decisions as well as export values, respectively. The focus is on how the influence of distance varies across differentiated and non-differentiated products. For both export participation and intensity decisions, the results are not in line with the network/search view and suggest that homogeneous products are more sensitive to distance than differentiated products when controlling for annual shocks and industry heterogeneity. Moreover, I find evidence of a learning effect from past trade experience. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Distance sensitivity, Export decisions, Gravity model, Firm-product level, Micro-data
in
Journal of Industry, Competition and Trade
pages
1 - 24
publisher
Springer
external identifiers
  • scopus:84944868348
ISSN
1573-7012
DOI
10.1007/s10842-013-0169-6
language
English
LU publication?
yes
id
dbbc0951-5db3-497f-8948-8636437f82f6 (old id 4359907)
date added to LUP
2014-03-17 14:41:24
date last changed
2018-01-07 09:53:37
@article{dbbc0951-5db3-497f-8948-8636437f82f6,
  abstract     = {Recent literature suggests that the extent to which exports of a product is influenced by distance depends on the product characteristics. Differentiated products with non-standardised attributes are typically claimed to be more distance-sensitive as transactions should involve interactions between buyers and sellers. But the empirical evidence still finds conflicting results. Previous studies have examined the effect of distance on export values across different product groups. This paper employs a gravity model on Swedish firm-product level export data to analyse the effect of distance on the export decisions as well as export values, respectively. The focus is on how the influence of distance varies across differentiated and non-differentiated products. For both export participation and intensity decisions, the results are not in line with the network/search view and suggest that homogeneous products are more sensitive to distance than differentiated products when controlling for annual shocks and industry heterogeneity. Moreover, I find evidence of a learning effect from past trade experience.},
  author       = {Jienwatcharamongkhol, Viroj},
  issn         = {1573-7012},
  keyword      = {Distance sensitivity,Export decisions,Gravity model,Firm-product level,Micro-data},
  language     = {eng},
  pages        = {1--24},
  publisher    = {Springer},
  series       = {Journal of Industry, Competition and Trade},
  title        = {Distance Sensitivity of Export: A Firm-Product Level Approach},
  url          = {http://dx.doi.org/10.1007/s10842-013-0169-6},
  year         = {2013},
}