Temporary trade. exporting only once in a while

Gábor Békés, Balázs Muraközy

    Research output: Other contribution

    Abstract (may include machine translation)

    Trade relationships often last for a surprisingly short period of time. Previously this was explained by failed export efforts. Instead, this column shows that it may be optimal for firms to export a certain product to a country only every once in a while. This requires less investment at the beginning and this strategy is often used by firms which are less productive or face credit constraints; this is especially true for farther and smaller markets.
    Original languageEnglish
    StatePublished - 2012

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