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Distance Sensitivity of Export: A Firm-Product Level Approach

PublikationArtikel (med peer review)
Export, Företagandets villkor, Gravity model, Viroj Jienwatcharamongkhol

Sammanfattning

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.

Jienwatcharamongkhol, V. (2014). Distance Sensitivity of Export: A Firm-Product Level Approach. Journal of Industry, Competition and Trade, 14(4), 531-554. DOI: 10.1007/s10842-013-0169-6

Baserat på innehåll

Distance Sensitivity of Export: A Firm-Product Level Approach
Article (with peer review)Publikation
Jienwatcharamongkhol, V.
Publiceringsår

2014

Sammanfattning

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.

Ratio Working Paper No. 201. Distance Sensitivity of Export
Working paperPublikation
Jienwatcharamongkhol, V.
Publiceringsår

2012

Publicerat i

Ratio Working Paper

Sammanfattning

Recent literature suggests that product characteristics assert diferent distance sensitivity on trade flows. But the empirical evidences still find conflicting results. Previous studies have examined the effect of distance on the export decisions across diferent product groups at the aggregate level. In this paper the analyses are executed at a disaggregated firm-product level to examine the issue based on individual firm’s decisions. Empirically, I employ a gravity model on Swedish micro-level export data in the manufacturing sector. The results suggest that homogeneous products are more sensitive to distance than differentiated products for the export selection and are insignificant for the export intensity.

Ratio Working Paper No. 201. Distance Sensitivity of Export
Working paperPublikation
Jienwatcharamongkhol, V.
Publiceringsår

2012

Publicerat i

Ratio Working Paper

Sammanfattning

Recent literature suggests that product characteristics assert diferent distance sensitivity on trade flows. But the empirical evidences still find conflicting results. Previous studies have examined the effect of distance on the export decisions across diferent product groups at the aggregate level. In this paper the analyses are executed at a disaggregated firm-product level to examine the issue based on individual firm’s decisions. Empirically, I employ a gravity model on Swedish micro-level export data in the manufacturing sector. The results suggest that homogeneous products are more sensitive to distance than differentiated products for the export selection and are insignificant for the export intensity.

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