The decision to export in Colombia: an empirical model of entry with sunk costs
Article Abstract:
An analysis of market entry with sunk costs as in the case of Colombian firms' decision to export reveals that sunk costs and prior exporting experience can have a significant effect on management decisions. A model based on panel data of large Colombian manufacturing firms is presented to quantify unpredictable responses of trade flows to exchange rate movements. The model demonstrates that sunk costs are significant and that prior export experience can increase the probability of exporting by as much as 60%.
Publication Name: American Economic Review
Subject: Economics
ISSN: 0002-8282
Year: 1997
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Exchange-rate regimes and international trade: evidence from the classical gold standard era
Article Abstract:
The effect of gold standards on globalization is discussed. A gravity model of trade is used to assess the effects on exchange rates and international trade.
Publication Name: American Economic Review
Subject: Economics
ISSN: 0002-8282
Year: 2003
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