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On the Duration of Trade

Опубликовано на портале: 23-12-2003
NBER Working Paper Series. 2003.  w9936.
Организация: National Bureau of Economic Research (NBER)
This paper employs survival analysis to study the duration of US imports. Authors find that the median duration of exporting a product to the US is very short, on the order to two to four years. Author's results also indicate that there is negative duration dependence meaning that if a country is able to survive in the exporting market for the first few years it will face a very small probability of failure and will export the product for a long period of time. This result holds across countries and industries. Authors find that our results are not only robust to aggregation but are strengthened by aggregation. That is, as authors aggregate from product level trade data to SITC industry level trade data the estimated survival increases. They rank countries by their survival experience and show that our rankings are strongly correlated with the rankings in Feenstra and Rose (2002), implying that product cycle followers also experience particularly short duration.

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