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Research seminar with Research Fellow Eliane Choquette
January 18, 2013 @ 12:30 pm - 1:45 pm
In 2012 Phd. Student Eliane Choquette was awarded the SMG Copenhagen Prize for best paper written by a young scholar in international business. Eliane has been invited to give a research seminar at SMG to present her award winning paper.
“Inward-outward linkages in the internationalization process of firms: their impact on export survival”
This study provides a new angle as to how firms’ importing activities influence their export activities by looking at survival in individual export markets. Duration models on a panel of Danish exporters in the manufacturing sector are used to investigate this relationship. The results reveal, on the one hand, that firms with importing experience from a specific market prior to initiating exports to this market have a shorter export spell. This in line with the thesis that prior importing experience facilitates firms’ outward internationalization by reducing the sunk costs associated with export market entry and that export survival is negatively correlated with these sunk costs. Only importing experience within the same market affects (shortens) a firm’s export spell, which also is in line with the argument that a priori import experience reduces firms’ export market specific sunk costs. On the other hand, firms’ current importing activities increase their chance of export survival. This finding is in line with the argument that efficiency gains are experienced by importing firms, enabling them to be more competitive in international markets and thereby being more likely to remain active in these markets. In this case, the origin of imports does not play a role in identifying the positive effect ongoing importing activities have on the chance of survival in a particular export market.