Whatever Next? Export Market Choices of New Zealand Firms

We examine product and market entry choices of New Zealand exporters, using enterprise-level data on firm performance and merchandise trade.

For firms already exporting, we ask: What determines their choices about what and where to export? General and specific prior trade experience play an important role in determining firms' future export activities, as do the export activities of other firms in the local area (a learning effect).

These results are robust to the inclusion of other export determinants, including the macroeconomic performance of destination countries, exchange rate movements, and the past performance of the exporting firm.

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Citation

Fabling, Richard, Arthur Grimes and Lynda Sanderson. 2012. "Whatever Next? Export Market Choices of New Zealand Firms,"Papers in Regional Science, 91:1, pp. 137-160.