Import experience and the post-entry performance of first-time exporters

Guadalupe Serrano; Francisco Requena; Raúl Mínguez; Guadalupe Serrano; Francisco Requena; Raúl Mínguez

doi:10.3934/NAR.2023018

National Accounting Review

2023, Volume 5, Issue 3: 298-321. doi: 10.3934/NAR.2023018

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Research article

Import experience and the post-entry performance of first-time exporters

1.
Department of Economic Analysis, Universitat de València, Valencia, Spain
2.
Department of Applied Economics Ⅱ, Universitat de València, Valencia, Spain
3.
Chamber of Commerce of Spain & Universidad Nebrija, Madrid, Spain

Received: 02 August 2023 Revised: 19 September 2023 Accepted: 25 September 2023 Published: 27 September 2023
JEL Codes: F23, F14, L25

Using the universe of Spanish first-time exporters selling manufactured products over the period 1997–2018, we show that import experience is associated with higher survival rates in the export markets, and conditioning on survival, a higher growth rate of their exports. In both cases, the highest impact is obtained when previous import experience occurs within one year before firms start exporting. Import experience improves general knowledge about foreign markets but it is not market-specific. Post-entry success in terms of survival and persistent growth rises if new exporters are large importers and if they buy intermediate inputs from competitive foreign suppliers.
- first-time exporters,
- import experience,
- export survival,
- export growth
Citation: Guadalupe Serrano, Francisco Requena, Raúl Mínguez. Import experience and the post-entry performance of first-time exporters[J]. National Accounting Review, 2023, 5(3): 298-321. doi: 10.3934/NAR.2023018

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Abstract

Using the universe of Spanish first-time exporters selling manufactured products over the period 1997–2018, we show that import experience is associated with higher survival rates in the export markets, and conditioning on survival, a higher growth rate of their exports. In both cases, the highest impact is obtained when previous import experience occurs within one year before firms start exporting. Import experience improves general knowledge about foreign markets but it is not market-specific. Post-entry success in terms of survival and persistent growth rises if new exporters are large importers and if they buy intermediate inputs from competitive foreign suppliers.

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