Explaining export diversification through firm level decisions: the case of Brazil

ANABEL MARIN; XAVIER CIRERA

RESEARCH POLICY

NORTH-HOLLAND

Lugar: Amsterdam; Año: 2015 vol. 44 p. 1962 - 1973

0048-7333

This paper investigates a largely unexplored dimension of export performance, firm level determinantsof export diversification. We extend innovation studies and enrich the export literature by analyzing therole of firms? innovation and market strategies in explaining export diversification. To do so, we use aunique dataset that links data on exports, innovation and firms? characteristics at the firm level in Brazil.Our findings show that access to existing resources, as emphasized by existing innovation studies onemerging economies, cannot account for all the heterogeneity observed in firm?s export diversificationin Brazil. Innovative efforts and the strategic positioning of firms in the domestic market are cruciallyimportant in explaining diversification. These results emphasize the importance of distinguishing newfrom existing exports when investigating the dimensions that affect export performance.