History Matters for the Export Decision: Plant Level Evidence from Turkish Manufacturing Industry

34 Pages Posted: 29 Sep 2008

See all articles by Sule Ozler

Sule Ozler

University of California, Los Angeles (UCLA) - Department of Economics; National Bureau of Economic Research (NBER)

Erol Taymaz

Middle East Technical University - Department of Economics

Kamil Yilmaz

Koc University

Date Written: September 28, 2008

Abstract

We analyze the export decision of the Turkish manufacturing plants from 1990 to 2001. In addition to the presence of high sunk costs of entry in export markets, we find support for the hypothesis that the full history of exporting matters for the current export decision. However, the effect of the past export experience on current export decision depreciates rapidly with time: Recent export market participation matters more than the participation further in the past. Finally, while persistence in exporting helps lower the costs of re-entry today, there are diminishing returns to export experience. The results are robust to several plant characteristics (plant size, technology, composition of the employment), and the spillovers from the presence of exporters in the same industry.

Keywords: Export decision, sunk costs, productivity, dynamic panel data, Turkey

JEL Classification: F14, D21

Suggested Citation

Ozler, Sule and Taymaz, Erol and Yilmaz, Kamil, History Matters for the Export Decision: Plant Level Evidence from Turkish Manufacturing Industry (September 28, 2008). World Development, Forthcoming, Available at SSRN: https://ssrn.com/abstract=1274773

Sule Ozler

University of California, Los Angeles (UCLA) - Department of Economics ( email )

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National Bureau of Economic Research (NBER)

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Erol Taymaz

Middle East Technical University - Department of Economics ( email )

Ankara, 06531
Turkey
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HOME PAGE: http://www.metu.edu.tr/~etaymaz

Kamil Yilmaz (Contact Author)

Koc University ( email )

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Sariyer
Istanbul, 34450
Turkey
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+90 212 338 1653 (Fax)

HOME PAGE: http://https://sites.google.com/view/kamilyilmaz/

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