The Decision to Export in Colombia: An Empirical Model of Entry with Sunk Costs

American Economic Review

Volumn 87, Issue 4, 1997, Pages 545-564

  Roberts, Mark J ^a   Tybout, James R ^b  

^a PENNSYLVANIA STATE UNIVERSITY   (United States)

^b GEORGETOWN UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

DECISION MAKING; EXPORT TRENDS; SUNK COSTS; TRADE FLOWS;

COLOMBIA;

EID: 0031397865     PISSN: 00028282     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Article

References (39)

1. Ait-Sahalia, Yacine. "Entry-Exit Decisions of Foreign Firms and Import Prices." Annales d'Economie et de Stastique, April-June 1994, No. 34, pp. 219-44.
2. Andrews, Donald W. K. "Chi-Square Diagnostic Tests for Econometric Models: Introduction and Applications." Journal of Econometrics, January 1988, 37(1), pp. 135-56.
3. Baily, Martin Neil; Hulten, Charles and Campbell, David. "Productivity Dynamics in Manufacturing Plants." Brookings Papers on Economic Activity, Microeconomics 1992, pp. 187-249.
4. Baldwin, Richard E. "Hysteresis in Import Prices: The Beachhead Effect." American Economic Review, September 1988, 78(4), pp. 773-85.
5. _. "Sunk-Cost Hysteresis." National Bureau of Economic Research (Cambridge, MA) Working Paper No. 2911, 1989.
6. Baldwin, Richard E. and Krugman, Paul R. "Persistent Trade Effects of Large Exchange Rate Shocks." Quarterly Journal of Economics, November 1989, 704(4), pp. 635-54.
7. Berry, R. Albert. "Firm (or Plant) Size in the Analysis of Trade and Development," in G. Helleiner, ed., Trade policy, industrialization and development: New perspectives. Oxford: Clarendon Press, 1992, pp. 46-88.
8. Bresnahan, Timothy F. and Reiss, Peter C. "Entry and Competition in Concentrated Markets." Journal of Political Economy, October 1991, 99(5), pp. 977-1009.
9. _. "Measuring the Importance of Sunk Costs." Annales d'Economie et de Stastistique, April-June 1994, No. 34, pp. 181-217.
10. Butler, J. S. and Moffitt, Robert. "A Computationally Efficient Quadrature Procedure for the One-Factor Multinomial Probit Model." Econometrica, May 1982, 50(3), pp. 761-64.
11. Campa, José Manuel. "Entry by Foreign Firms in the United States Under Exchange Rate Uncertainty." Review of Economics and Statistics, November 1993, 75(4), pp. 614-22.
12. Caves, Richard E. "International Differences in Industrial Organization," in Richard Schmalensee and Robert Willig, eds., Handbook of industrial organization, Vol. 2. Amsterdam: North-Holland, 1989, pp. 1225-50.
13. Chamberlain, Gary. "Analysis of Covariance with Qualitative Data." Review of Economic Studies, April 1980, 47(2), pp. 225-38.
14. Dixit, Avinash. "Entry and Exit Decisions Under Uncertainty." Journal of Political Economy, June 1989a, 97(3), pp. 620-38.
15. _. "Hysteresis, Import Penetration, and Exchange Rate Pass-Through." Quarterly Journal of Economics, May 1989b, 104(2), pp. 205-28.
16. Dunne, Timothy; Roberts, Mark J. and Samuelson, Larry. "The Growth and Failure of U.S. Manufacturing Plants." Quarterly Journal of Economics, November 1989, 105(4), pp. 671-98.
17. Eckstein, Zvi and Wolpin, Kenneth I. "The Specification and Estimation of Dynamic Stochastic Discrete Choice Models: A Survey." Journal of Human Resources, Fall 1989, 24(4), pp. 562-98.
18. Feinberg, Robert M. "Hysteresis and Export Targeting." International Journal of Industrial Organization, December 1992, 10(4), pp. 672-77.
19. Gagnon, Joseph. "Adjustment Costs and International Trade Dynamics." Ph.D. dissertation, Stanford University, 1987.
20. Goldstein, Morris and Khan, Mohsin S. "Income and Price Effects in Foreign Trade," in Ronald W. Jones and Peter B. Kenen, eds., Handbook of international economics, Vol. 1. Amsterdam: North-Holland, 1985, pp. 1041-1105.
21. Heckman, James J. "Heterogeneity and State Dependence," in Sherwin Rosen, ed., Studies in labor markets. Chicago: University of Chicago Press, 1981a, pp. 91-139.
22. _. "Statistical Models for Discrete Panel Data," in Charles Manski and Daniel McFadden, eds., The structural analysis of discrete data. Cambridge, MA: MIT Press, 1981b, pp. 114-78.
23. _. "The Incidental Parameters Problem and the Problem of Initial Conditions in Estimating a Discrete Time-Discrete Data Stochastic Process," in Charles Manski and Daniel McFadden, eds., The structural analysis of discrete data. Cambridge, MA: MIT Press, 1981c, pp. 179-95.
24. Hsiao, Cheng. Analysis of panel data. Cambridge: Cambridge University Press, 1986.
25. Keane, Michael P. "A Computationally Practical Simulation Estimator for Panel Data." Econometrica, January 1994, 62(1), pp. 95-116.
26. Krugman, Paul R. "Import Protection as Export Promotion: International Competition in the Presence of Oligopoly and Economies of Scale," in H. Kierzkowski, ed., Monopolistic competition and international trade. Oxford: Oxford University Press, 1984, pp. 180-93.
27. _. Exchange-rate instability. Cambridge: MIT Press, 1989.
28. Liu, Lili and Tybout, James R. "Productivity Growth in Chile and Colombia: Panel-Based Evidence on the Role of Entry, Exit and Learning," in Mark J. Roberts and James R. Tybout, eds., Industrial evolution in developing countries: Micro patterns of turnover, productivity, and market structure. Oxford: Oxford University Press, 1996, pp. 73-103.
29. McFadden, Daniel. "Method of Simulated Moments for Estimation of Discrete Response Models Without Numerical Integration." Econometrica, September 1989, 57(5), pp. 995-1016.
30. Neyman, J. and Scott, E. "Consistent Estimates Based on Partially Consistent Observations." Econometrica, January 1948, 16(1), pp. 1-32.
31. Ocampo, José and Villar, Leonardo. "Colombian Manufactured Exports 1967-1991," in Gerald K. Heilleiner, ed., Manufacturing for export in the developing world: Problems and possibilities. New York: Roultedge, 1995, pp. 54-98.
32. Pakes, Ariel and Pollard, David. "Simulation and the Asymptotics of Optimization Estimators." Econometrica, September 1989, 57(5), pp. 1027-58.
33. Parsley, David C. and Wei, Shang-Jin. "Insignificant and Inconsequential Hysteresis: The Case of U.S. Bilateral Trade." Review of Economics and Statistics, November 1993, 75(4), pp. 606-13.
34. Roberts, Mark J. "Colombia, 1977-1985: Producer Turnover, Margins, and Trade Exposure," in Mark J. Roberts and James R. Tybout, eds., Industrial evolution in developing countries: Micro patterns of turnover, productivity, and market structure. Oxford: Oxford University Press, 1996, pp. 227-59.
35. Roberts, Mark J.; Sullivan, Theresa A. and Tybout, James R. "Micro Foundations of Export Booms: Evidence from Colombia, Mexico, and Morocco." Working paper, Pennsylvania State University, 1995.
36. Rust, John. "Structural Estimation of Markov Decision Processes," in R. Engle and D. McFadden, eds., Handbook of econometrics, Vol. 4. Amsterdam: North-Holland, 1997, pp. 3081-143.
37. Tybout, James R. "Chile, 1979-1986: Trade Liberalization and Its Aftermath," in Mark J. Roberts and James R. Tybout, eds., Industrial evolution in developing countries: Micro patterns of turnover, productivity, and market structure. Oxford, Oxford University Press, 1996, pp. 200-26.
38. World Bank. "Colombia Export Development Project." Mimeo, World Bank, Washington, DC, 1992.
39. Wright, B. D. and Douglas, G. "Better Procedures for Sample-Free Item Analysis." Department of Education Statistics Lab Research Memo No. 20, University of Chicago, 1975.