Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

Exports, investment and firm-level sales volatility

Alejandro Riaño
Review of World Economics / Weltwirtschaftliches Archiv
Vol. 147, No. 4 (November 2011), pp. 643-663
Published by: Springer
Stable URL: http://www.jstor.org/stable/41485776
Page Count: 21
  • Download ($43.95)
  • Cite this Item
Exports, investment and firm-level sales volatility
Preview not available

Abstract

This paper presents a dynamic model of risk-averse producers' decision to invest in physical capital and to export. The model features irreversible investment, no capital markets and fixed and sunk costs to export. Several features of the distribution of investment rates and export participation patterns observed in firmlevel data are closely matched in a calibration exercise. Counterfactual experiments show that large adjustments in total sales associated with entry into foreign markets increase the volatility of total sales for exporting firms.

Page Thumbnails

  • Thumbnail: Page 
[643]
    [643]
  • Thumbnail: Page 
644
    644
  • Thumbnail: Page 
645
    645
  • Thumbnail: Page 
646
    646
  • Thumbnail: Page 
647
    647
  • Thumbnail: Page 
648
    648
  • Thumbnail: Page 
649
    649
  • Thumbnail: Page 
650
    650
  • Thumbnail: Page 
651
    651
  • Thumbnail: Page 
652
    652
  • Thumbnail: Page 
653
    653
  • Thumbnail: Page 
654
    654
  • Thumbnail: Page 
655
    655
  • Thumbnail: Page 
656
    656
  • Thumbnail: Page 
657
    657
  • Thumbnail: Page 
658
    658
  • Thumbnail: Page 
659
    659
  • Thumbnail: Page 
660
    660
  • Thumbnail: Page 
661
    661
  • Thumbnail: Page 
662
    662
  • Thumbnail: Page 
663
    663