Abstract
The trade literature has long discussed the existence of some benefits attributed to exporting (learning-by-exporting), among others, the improvement in survival chances. This paper examines whether exporting SMEs enjoy better survival prospects than non-exporting SMEs. We investigate the determinants of survival of exporting and non-exporting SMEs and explore whether the exporting behaviour plays a significant role in explaining their probability of exit. For this purpose, we estimate discrete time proportional hazard models that account for unobserved individual heterogeneity. The dataset is a sample of Spanish manufacturing SMEs drawn from the Encuesta sobre Estrategias Empresariales (ESEE) for 1990–2002. After controlling for firm, industry and economy characteristics, we find evidence supporting the existence of a sizeable “surviving-by-exporting” effect. That is, exporting SMEs face a significantly lower probability of failure than non-exporters.
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