Title: Export characteristics and output volatility: comparative firm-level evidence for CEE countries
Citation: REVIEW OF WORLD ECONOMICS vol. 154 no. 2 p. 347-376
Publisher: SPRINGER
Publication Year: 2018
JRC N°: JRC103348
ISSN: 1610-2878
URI: https://link.springer.com/article/10.1007/s10290-018-0312-x
DOI: 10.1007/s10290-018-0312-x
Type: Articles in periodicals and books
Abstract: The literature shows that openness to trade improves long-term growth but also that it may increase exposure to high output volatility. In this vein, our paper investigates whether exporting and export diversification at the firm level have an effect on the out-put volatility of firms. We use large representative firm-level data-bases from Estonia, Hungary, Romania, Slovakia and Slovenia over the last boom-bust cycle in 2004–2012. The results con¬firm that exporting is related to higher volatility at the firm level. There is also evidence that this effect increased during the Great Recession due to the large negative shocks in export markets. In contrast to the literature and empirical findings for large or advanced countries we do not find a statistically significant and consistent mitigating effect from export diversification in the Central and Eastern European countries. In addition, exporting more products or serving more markets does not necessarily result in higher stability of firm sales.
JRC Directorate:Growth and Innovation

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