Explaining Export Success: Firm Characteristics and Spillover Effects

SummaryIn this paper, we analyze empirically the determinants of export performance for Chilean manufacturing plants. We are particularly interested in investigating the factors that determine success in the exporting process by distinguishing between firms as non-exporters, sporadic exporters, and permanent exporters. Our findings show that initial firm characteristics such as labor skills and technological innovation are positively associated with exporting, but these same factors are unable to explain why some firms export permanently. In addition, our evidence suggests that previous export experience, multinational spillovers, and an increase in productivity positively contribute to the probability of becoming a permanent exporter.