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@article{ Sinani2008,
 title = {Export market participation with sunk costs and firm heterogeneity.},
 author = {Sinani, Evis and Hobdari, Bersant},
 journal = {Applied Economics},
 number = {25},
 pages = {3195-3207},
 volume = {42},
 year = {2008},
 issn = {1466-4283},
 doi = {https://doi.org/10.1080/00036840802112372},
 urn = {https://nbn-resolving.org/urn:nbn:de:0168-ssoar-242179},
 abstract = {In this paper we investigate the importance of sunk costs, firm characteristics and spillovers from nearby exporters on a firm’s decision to participate in exporting. The empirical analysis involves the estimation of a non-structural, discrete choice, dynamic model with firm heterogeneity. By using panel data for Estonian companies from 1994 to 1999 we find that: (i) both sunk costs and observable firm characteristics are important determinants of export market participation;  (ii) previous history matters, in that, if a firm has been exporting the previous period or the period before, it significantly increases the likelihood of the firm exporting in the current period; (iii) larger firms with high capital intensity and foreign ownership are more likely to be exporters; (iv) operating in an export-oriented industry increases a firm’s likelihood of exporting.},
}