Decision to export among Ghanaian manufacturing firms: Does export destination influence the entry sunk cost?

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dc.creatorMulangu, Francis M.
dc.creatorOlarinde, Luke O.
dc.date2016-10-26
dc.date2024-06-21T09:22:51Z
dc.date2024-06-21T09:22:51Z
dc.date.accessioned2026-06-27T15:14:21Z
dc.descriptionTwo nonexclusive hypotheses have been put forward to explain why exporters enjoy higher productivity than do non-exporters: self-selection and learning-by-exporting. In the case of a small economy such as Ghana’s, we suspect that self-selection to export is less prevalent because of the high sunk cost of export market entry. While this sunk cost is considered high in the case of developing countries, its magnitude and persistence will vary by the export destination. The present paper evaluates how export destination influences export entry sunk cost. We use a dynamic probit model that corrects for the correlation between the error term and the lagged dependent variable and find African destinations to be associated with both lower and less persistent sunk costs of exporting relative to other export destinations.
dc.formatapplication/pdf
dc.identifierhttps://hdl.handle.net/10568/147430
dc.identifier.urihttp://hdl.handle.net/123456789/98564
dc.languageen
dc.publisherInternational Food Policy Research Institute
dc.rightsOpen Access
dc.sourceMulangu, Francis M.; Olarinde, Luke O. 2016. Decision to export among Ghanaian manufacturing firms: Does export destination influence the entry sunk cost? AGRODEP Working Paper 0025. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/147430
dc.subjectexports
dc.subjectproductivity
dc.subjectmanufacturing
dc.titleDecision to export among Ghanaian manufacturing firms: Does export destination influence the entry sunk cost?
dc.typeWorking Paper

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