Darwinian Effect & Firms’ Export Decision

Darwinian Effect & Firms’ Export Decision | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Darwinian Effect & Firms’ Export Decision Rushde Akbar, Samiul Haque This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-7696076/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract There was no funding for this project We develop a theoretical framework for a novel industry level effect “Darwinian Effect”: lower industry level opportunity cost has a negative effect on export revenues for firms serving that industry, relative to rest of the economy. This effect arises from an industry level relative productivity improvement that leads to a lower opportunity cost. Lower opportunity cost decreases the relative price index of the industry thus increasing the relative competitiveness of the sector. As a result, the probability of firm level export participation falls in the industry. We test this prediction using plant level data from Chile and Colombia; finding support for our hypothesis. Export Firm Heterogeneity Industry Competition Opportunity Cost Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. 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