Survival in Export Markets: Experience, Informal Network and Productivity

Abstract The paper explores the influence of learning processes and firms characteristics on the survival of export relationships for the universe of exporters belonging to an Italian region, Trentino. Exploiting the information for a long time period, between 2001 and 2019, the analysis unravels the distinct role played by previous experience and experimentation built up by an exporter for the success and survival of export relationships. Learning effects, especially at product rather than at destination level, are relevant to decrease the hazard rate. Being part of an informal network with other firms exporting the same product to the same destination contributes to increase the duration of export transactions. We further find evidence of the crucial role played by firms’ productivity in increasing the survival probability of export flows. JEL codes: F14, C14, C41, D22, L25