Export Behavior of the Turkish Manufacturing Firms

Export Behavior of the Turkish Manufacturing Firms

Title:

Export Behavior of the Turkish Manufacturing Firms

Number:

15/22

Author(s):

Aslıhan Atabek Demirhan

Language:

English

Date:

August 2015

Abstract:

Up to date, Turkey’s export performance has been analyzed from macro perspective extensively. However, far too little attention has been paid to firm-level analysis contrary to ongoing and growing empirical literature. Using firm-level data of manufacturing sector during the period 1989-2010, this paper explored the export behavior of Turkish firms. The preliminary analysis revealed the superiority of exporting firms over non-exporters. Both self-selection and learning-by-exporting are found to be valid explanation for the source of this observed export premium. Dynamic discrete choice model results show that Turkish manufacturing firms are facing with export market entry costs and those costs are important determinants of the firms’ export propensity. Besides, it is observed that crises lead to changes in those entry costs and consequently changes in the export behavior of the firms.

Keywords:

Export behavior, Firm heterogeneity, Firm-level analysis, Micro econometrics, Turkey

JEL Codes:

C25; C22; F14

Export Behavior of the Turkish Manufacturing Firms
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