Exports, sunk costs and financial restrictions in Argentina during the 1990s

Pre-print, Working paper: This paper examines firms' export decisions in Argentina during the 1990s. Using a sample of 1600 Argentine industrial firms with information for the years 1992, 1996, 1998 and 2001, we test which factors affect the probability of entering foreign markets. We focus on the role of sunk costs and the access to financial markets as key determinants of firms' export decisions. The estimation of a non-linear binary variable model using export prior experience and explicit sunk costs variables confirms self-selection hypothesis on export markets participation. Results also suggest that firm-specific characteristics are significant to explain export decisions, particularly firm's access to the financial system

Author(s)

Paula Español

Date of publication
  • 2007
Keywords JEL
C35 F14 O54
Keywords
  • Sunk costs
  • Firm’s export decisions
  • Financial restrictions
  • Argentina
Internal reference
  • PSE Working Papers n°2007-01
Version
  • 1