In addition, 7 percent of the firms in our sample at least in one of the years considered
have imported all of their intermediate inputs and 28 percent have exported all of their
output. In the first case, the hundred-percent importer, the average export share is
around 50 percent while the average import share, corresponding to the second cases, the
hundred-percent exporters, is only 10 percent.
Import Share
Export Share
216 0,2345 0,3405
Electronic and Electrical Goods
|
Import Share Export Share |
121 124 Textile and Garments |
0,0689 0,1129 |
0,2102 0,2527 |
|
Import Share |
401 |
0,0653 |
0,2003 |
|
Export Share |
412 |
0,3526 |
0,4235 |
Table 2. Statistics on trade
|
Variable |
__________Obs |
Mean |
Std. Dev |
|
Import Share |
731 |
0,1044 |
0,2403 |
|
of Importers |
203 |
0,3759 |
0,3258 |
|
of Exporters |
389 |
0,1704 |
0,2911 |
|
Export Share |
752 |
0,2792 |
0,3877 |
|
of Exporters |
402 |
0,5222 |
0,3918 |
|
of Importers |
203 |
0,3863 |
0,3829 |
Drugs and Pharmaceutical
209 0,1999 0,2953
A more rigorous analysis of these patterns is however called for. For this, we proceed
with the estimation of export decision equations following the literature on export
market participation (Bernard and Jensen (2004), Bernard and Wagner (2001) among
some ) and we apply the same framework to the choice of importing, following
Macgarvie (2003).
Firms’ decision to export (import) depends on the fact that the current value of expected
profits from exporting (importing) exceeds the fixed cost incurred in changing the export
(import) status, Sit. This can be expressed with the following discrete-choice equation:
Yit =
if E[πiYt]-Sit >0
otherwise
(1)
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