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In this article, we analyze the export decision of Korean manufacturing firms with emphasis on those in the food processing sector. A dynamic discrete choice model based on sunk (entry or exit) costs is specified for export behavior. Data for 1996-2002 on 1022 Korean firms, of which 95 are in the food processing sector, are assembled. A nonparametric measure of firm productivity is derived for use in the export-behavior (probit) model. Results show the significant effects of sunk costs on the export decision of Korean firms. A firm-size effect on export behavior is identified for food processing firms, unlike in the case of their manufacturing counterparts. We also find a firm-size effect on productivity in all manufacturing firms.

Subject(s): Agribusiness

Issue Date: 2006

Publication Type: Conference Paper/ Presentation

PURL Identifier: http://purl.umn.edu/21271

Total Pages: 20

Series Statement: Selected Paper 155702

Record appears in: American Agricultural Economics Association (AAEA) > 2006 Annual meeting, July 23-26, Long Beach, CA





Autor: Gopinath, Munisamy ; Kim, Hanho ; Kim, Sooil

Fuente: http://ageconsearch.umn.edu/record/21271?ln=en



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