2016/07 | LEM Working Paper Series | ||||||||||||||||
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Small, young, and exporters: New evidence on the determinants of firm growth |
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Marco Grazzi and Daniele Moschella |
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Keywords | |||||||||||||||||
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Firm age and performance, Firm growth, International trade, Born global, Exchange rates pass-through
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JEL Classifications | |||||||||||||||||
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D22, F14, L11, L21, L25
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Abstract | |||||||||||||||||
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This work investigates how the export status of the firm influences
the patterns of growth at different age classes. We address this
research question resorting to a novel set of data that links
together the universe of Italian firms and detailed data on export
transactions. We find that the positive relationship between export
status and growth declines with firm age. Further, we also find
that, even when accounting for the role of age, the negative
size-growth relationship does not disappear, contrary to some recent
evidence. These results, which are robust to a series of controls,
suggest for a positive signaling role of the export status which is
stronger for young exporters or born globals. Exploiting the
product-country level dimension of the customs data we also provide,
for the first time, evidence on differences in exchange rates pass
through between young and experienced exporters. In particular, we
find that early exporters appear to be well equipped to face
exchange rates variations as their exports decrease less following a
currency appreciation.
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