Decision to export among Ghanaian manufacturing firms: Does export destination influence the entry sunk cost?
Two nonexclusive hypotheses have been put forward to explain why exporters enjoy higher productivity than do non-exporters: self-selection and learning-by-exporting. In the case of a small economy such as Ghana’s, we suspect that self-selection to export is less prevalent because of the high sunk co...
| Autores principales: | , |
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| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
| Publicado: |
International Food Policy Research Institute
2016
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/147430 |
| _version_ | 1855524252832235520 |
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| author | Mulangu, Francis M. Olarinde, Luke O. |
| author_browse | Mulangu, Francis M. Olarinde, Luke O. |
| author_facet | Mulangu, Francis M. Olarinde, Luke O. |
| author_sort | Mulangu, Francis M. |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Two nonexclusive hypotheses have been put forward to explain why exporters enjoy higher productivity than do non-exporters: self-selection and learning-by-exporting. In the case of a small economy such as Ghana’s, we suspect that self-selection to export is less prevalent because of the high sunk cost of export market entry. While this sunk cost is considered high in the case of developing countries, its magnitude and persistence will vary by the export destination. The present paper evaluates how export destination influences export entry sunk cost. We use a dynamic probit model that corrects for the correlation between the error term and the lagged dependent variable and find African destinations to be associated with both lower and less persistent sunk costs of exporting relative to other export destinations. |
| format | Artículo preliminar |
| id | CGSpace147430 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2016 |
| publishDateRange | 2016 |
| publishDateSort | 2016 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1474302025-11-06T06:07:15Z Decision to export among Ghanaian manufacturing firms: Does export destination influence the entry sunk cost? Mulangu, Francis M. Olarinde, Luke O. exports productivity manufacturing Two nonexclusive hypotheses have been put forward to explain why exporters enjoy higher productivity than do non-exporters: self-selection and learning-by-exporting. In the case of a small economy such as Ghana’s, we suspect that self-selection to export is less prevalent because of the high sunk cost of export market entry. While this sunk cost is considered high in the case of developing countries, its magnitude and persistence will vary by the export destination. The present paper evaluates how export destination influences export entry sunk cost. We use a dynamic probit model that corrects for the correlation between the error term and the lagged dependent variable and find African destinations to be associated with both lower and less persistent sunk costs of exporting relative to other export destinations. 2016-10-26 2024-06-21T09:22:51Z 2024-06-21T09:22:51Z Working Paper https://hdl.handle.net/10568/147430 en Open Access application/pdf International Food Policy Research Institute Mulangu, Francis M.; Olarinde, Luke O. 2016. Decision to export among Ghanaian manufacturing firms: Does export destination influence the entry sunk cost? AGRODEP Working Paper 0025. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/147430 |
| spellingShingle | exports productivity manufacturing Mulangu, Francis M. Olarinde, Luke O. Decision to export among Ghanaian manufacturing firms: Does export destination influence the entry sunk cost? |
| title | Decision to export among Ghanaian manufacturing firms: Does export destination influence the entry sunk cost? |
| title_full | Decision to export among Ghanaian manufacturing firms: Does export destination influence the entry sunk cost? |
| title_fullStr | Decision to export among Ghanaian manufacturing firms: Does export destination influence the entry sunk cost? |
| title_full_unstemmed | Decision to export among Ghanaian manufacturing firms: Does export destination influence the entry sunk cost? |
| title_short | Decision to export among Ghanaian manufacturing firms: Does export destination influence the entry sunk cost? |
| title_sort | decision to export among ghanaian manufacturing firms does export destination influence the entry sunk cost |
| topic | exports productivity manufacturing |
| url | https://hdl.handle.net/10568/147430 |
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