Export mode, firm heterogeneity, and source country characteristics

Abstract

This paper directly compares the size and performance of direct, indirect and non-exporters using firm-level data from 69 countries. The authors find that direct exporters are on average larger and outperform both indirect exporters and non-exporters. Furthermore, they analyse the relationship between source-specific variables, particularly trade costs, and the differences across exporting statuses. The authors find that higher trade barriers significantly lower differences between exporters and non-exporters but raise those between direct and indirect exporters. Similarly, domestic market size and skill endowments affect the differences across firm types.