High-growth firms and international trade: evidence from Ecuador

The aim of this article is to open a detailed discussion about the relationship between international trade activities (export, import and trade openness) and the probability of becoming a high-growth firm. International trade has been widely related to a variety of outcomes, but there is no evidenc...

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Bibliographic Details
Published inJournal of evolutionary economics Vol. 32; no. 1; pp. 299 - 332
Main Authors Camino-Mogro, Segundo, Armijos, Mary, Vera-Gilces, Paul
Format Journal Article
LanguageEnglish
Published Berlin/Heidelberg Springer Berlin Heidelberg 2022
Springer Nature B.V
Subjects
Economic Growth
Economic Theory/Quantitative Economics/Mathematical Methods
Economics
Economics and Finance
Entrepreneurship
Globalization
Institutional/Evolutionary Economics
International trade
Manufacturing
Microeconomics
Occupational mobility
Openness
Productivity
R & D/Technology Policy
R&D
Regular Article
Research & development
Robustness
Selfselection
Ecuador
High-growth firms
International trade
Firm age
D22
F14
L20
Performance
L25
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Summary:The aim of this article is to open a detailed discussion about the relationship between international trade activities (export, import and trade openness) and the probability of becoming a high-growth firm. International trade has been widely related to a variety of outcomes, but there is no evidence of the relationship to high-growth firms. We study this issue by estimating a two-step probit model to correct the problem of self-selection that usually appears in trade research. Additionally, we use matching techniques as a robustness check to address possible endogeneity problems. We find that international trade is a consistent and robust path for becoming a high-growth firm. Several policy implications are derived from our work.
ISSN:0936-9937
1432-1386
DOI:10.1007/s00191-021-00756-1