Information Cost As A Prior Hurdle to Exporting

In this paper, we empirically assess how information cost, as one component of trade costs, impacts the decision of an individual firm to export. Firm-level data measuring the difficulty of obtaining information about technical regulations in the European Union (EU) and the United States is used as a proxy for information cost to evaluate reduction in firm incentives to export. Results suggest that information cost significantly reduces the likelihood of exporting to these two destinations. Negative impacts are relatively larger for a firm exporting to the United States than to the EU.


Issue Date:
2011
Publication Type:
Conference Paper/ Presentation
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/103622
PURL Identifier:
http://purl.umn.edu/103622
Total Pages:
23
JEL Codes:
F14; L25
Series Statement:
Selected Paper
13552




 Record created 2017-04-01, last modified 2019-08-26

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)