Information Cost: A Prior Hurdle to Exporting

This paper empirically investigates how information cost, as part of trade costs, affects the decision of an individual firm to export. We use cross section firm-level data to examine how the difficulty of obtaining information on technical regulations in the European Union (EU) and the United States actually reduces firm incentives to export to these two destinations. Results suggest that increased information cost significantly reduces the probability of exporting for an individual firm, beyond tariff and other nontariff barriers.


Issue Date:
2009
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/51745
Total Pages:
26
Series Statement:
Contributed Paper
719




 Record created 2017-04-01, last modified 2017-08-25

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