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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, S
it. This can be expressed with the following discrete-choice equation:

Yit =


if E[πiYt]-Sit >0
otherwise


(1)




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