Rigo, Davide ORCID: 0000-0003-0663-7806
(2024)
The role of firm-to-firm relationships in exporter dynamics.
Economica, 91 (362).
569 - 587.
ISSN 0013-0427
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Text (Economica - 2024 - Rigo - The role of firm‐to‐firm relationships in exporter dynamics (1))
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Abstract
This paper investigates the role of firm-to-firm relationships in export market dynamics, documenting the following stylized facts for French exporters. First, exporters grow in a foreign market by expanding their customer base; the average French exporter doubles its number of buyers after 8 years. Second, sales to existing customers remain the predominant source of growth in a foreign market, with long-lasting relationships contributing to most export values. Third, as a mechanism driving firms' growth in a relationship, prices fall as a relationship ages. Fourth, I exploit the Brexit referendum as a quasi-natural experiment to examine how firm-to-firm relationships adjust in response to changes in market access. I find that French exporters with long-lasting relationships in the UK are less affected by the referendum shock and exhibit higher exchange rate pass-through. Overall, these findings indicate that long-lasting relationships represent a crucial margin for export market growth and in shielding exporters from changing market conditions.
Item Type: | Article |
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Official URL: | https://onlinelibrary.wiley.com/journal/14680335 |
Additional Information: | © 2024 The Authors |
Divisions: | Geography & Environment |
Subjects: | H Social Sciences > HB Economic Theory |
JEL classification: | L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L20 - General |
Date Deposited: | 03 Jan 2024 10:33 |
Last Modified: | 15 Aug 2024 19:36 |
URI: | http://eprints.lse.ac.uk/id/eprint/121135 |
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