Exporter Dynamics Database Version 2.0
Ana Margarida Fernandes
Martha Denisse Pierola Aldo Pazzini Bortoluzzi
Trade and International Integration Unit Development Research Group
The World Bank
Washington DC October 20 2015
A project funded by KCP, MDTF, and SRP
What we knew about bilateral trade flows and what we know now
$35.2 million Total trade in 2013
78 exporters $451,836 average size Herfindahl Index: 45% Exporter entry rate: 36%
$35.8 million Total trade In 2013
32 exporters $1,119,836 average size Herfindahl Index: 92% Exporter entry rate: 41%
… and how about total exports of a given product?
Nicaragua: $ 105 million in
Thailand: $ 99 million in
41 exporters $2,581,599 average size Top 5% exporters: 62% Exporter Entry: 44% 1st-y Entrant Survival: 39%
643 exporters $153,474 average size Top 5% exporters: 84% Exporter Entry: 48% 1st-y Entrant Survival: 34%
• Firm-level data is key to understand the micro foundations of export growth
– It provides information about the characteristics of the exporters
– The degree of concentration among these exporters
– And their entry, exit and survival dynamics
• The Exporter Dynamics Database (EDD) version 1.0 filled this analytical gap by providing a comprehensive source of information on firms that export and their dynamics
Exporter Dynamics Database
What measures are included in the EDD?
• Basic characteristics of export sector – Number of exporters, exporter size (in export value), exporter
growth
• Export concentration/diversification – Herfindahl indexes, share of top X% exporters, number of
products or destinations per exporter, number of exporters per product or destination
• Firm dynamics in the export sector – Exporter entry, exit and first-, second-, or third-year entrant
survival rates
• Firm-product dynamics – Product entry, exit and survival rates for incumbent exporters and
share of new products in exporter values
• Firm-destination dynamics – Destination entry, exit and survival rates for incumbent exporters
and share of new destinations in exporter values
• Unit prices
What is basis for constructing the measures in the EDD?
• Customs data collected for each country covers the universe of export transactions
– Data includes in each country values and quantities exported by each firm of each product (HS 6-digit) to each destination country in each year
– We exclude only oil sector exports (HS chapter 27)
• For products we use a consolidated set of HS 6-digit codes that are consistent across HS1996, HS2002, HS2007, and HS2012 revisions
Disaggregation levels of the EDD measures
• Exporting country-year level
• Exporting country-product-year level with product being either HS 2-digit or HS 4-digit or HS 6-digit
• Exporting country-destination-year level
• Exporting country-HS 2-digit product-destination-year level NEW
• Exporting country-ISIC 3-digit-year level NEW
Flavors of the EDD measures
• Measures at 7 different disaggregation levels are available in 4 different flavors:
– Covering all export transactions
– Covering export transactions for firms whose annual exports are all larger than 1,000 USD NEW
– Covering export transactions for manufacturing only NEW
– Covering export transactions for manufacturing only and for firms whose annual exports are all larger than 1,000 USD NEW
EDD version 1.0 covered 45 countries
Data for 34 existing countries was updated
Data for 25 new countries was added
EDD version 2.0 covers 70 countries
Country 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 TotalAlbania 1 1 1 1 1 1 1 1 1 9
Belgium 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 17
Burkina Faso 1 1 1 1 1 1 1 1 8
Bangladesh 1 1 1 1 1 1 1 1 1 1 10
Bulgaria 1 1 1 1 1 1 6
Brazil 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 18
Botswana 1 1 1 1 1 1 1 1 1 1 1 11
Chile 1 1 1 1 1 1 1 1 1 1 10
Cameroon 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 17
Colombia 1 1 1 1 1 1 1 7
Costa Rica 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 15
Dominican Republic 1 1 1 1 1 1 1 1 1 1 1 1 1 13
Ecuador 1 1 1 1 1 1 1 1 1 1 1 1 1 13
Egypt 1 1 1 1 1 1 1 7
Spain 1 1 1 1 1 1 1 1 1 1 10
Estonia 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 15
Guatemala 1 1 1 1 1 1 1 1 1 9
Iran 1 1 1 1 1 5
Jordan 1 1 1 1 1 1 1 1 1 1 10
Kenya 1 1 1 1 1 1 1 1 1 9
Cambodia 1 1 1 1 1 1 1 1 1 1 10
Kuwait 1 1 2
Laos 1 1 1 1 4
Lebanon 1 1 1 1 1 5
Morocco 1 1 1 1 1 1 1 1 1 1 1 1 12
Mexico 1 1 1 1 1 1 1 1 1 1 1 1 12
Macedonia 1 1 1 1 1 1 1 1 1 1 10
Mali 1 1 1 1 4
Mauritius 1 1 1 1 1 1 1 1 1 1 1 11
Malawi 1 1 1 1 1 1 1 7
Niger 1 1 1 3
Nicaragua 1 1 1 1 1 1 1 1 1 1 1 1 12
Norway 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 18
New Zealand 1 1 1 1 1 1 1 1 1 1 1 1 12
Pakistan 1 1 1 1 1 1 1 1 1 9
Peru 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 17
Portugal 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 16
Senegal 1 1 1 1 1 1 1 1 1 1 1 1 1 13
El Salvador 1 1 1 1 1 1 1 1 8
Sweden 1 1 1 1 1 1 1 1 1 1 10
Turkey 1 1 1 1 1 1 1 1 1 1 1 1 12
Tanzania 1 1 1 1 1 1 1 1 1 1 10
Uganda 1 1 1 1 1 1 1 1 1 1 10
Yemen 1 1 1 1 1 5
South Africa 1 1 1 1 1 1 1 1 1 1 1 1 12
Bolivia 1 1 1 1 1 1 1 7
Paraguay 1 1 1 1 1 1 6
Uruguay 1 1 1 1 1 1 1 1 1 1 1 1 12
Germany 1 1 1 1 4
Denmark 1 1 1 1 1 1 1 1 1 1 1 1 12
Croatia 1 1 1 1 1 1 6
Slovenia 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 15
Romania 1 1 1 1 1 1 1 7
Madagascar 1 1 1 1 1 1 6
Zambia 1 1 1 1 1 1 1 1 1 1 1 1 1 13
Rwanda 1 1 1 1 1 1 1 1 1 1 1 1 12
Gabon 1 1 1 1 1 1 1 7
Cote d'Ivoire 1 1 1 1 4
Guinea 1 1 1 1 4
Georgia 1 1 1 1 1 1 1 1 1 1 10
Kyrgyz Republic 1 1 1 1 1 1 1 7
Nepal 1 1 1 1 4
Ethiopia 1 1 1 1 1 5
Thailand 1 1 1 3
Myanmar 1 1 1 3
Timor-Leste 1 1 1 1 1 1 1 7
Swaziland 1 1
Sao Tome 1 1
Sri Lanka 1 1
Total 9 10 12 16 22 31 36 37 43 50 53 57 59 56 51 48 20 10 620
EDD version 2.0 covers mostly the 2000s and 2010s
Public and Free Access to the Exporter Dynamics Database:
http://econ.worldbank.org/exporter-dynamics-database
Facts and Research Findings based on the EDD
Across countries exports are highly concentrated among their largest firms
• The role of these export superstars for countries’ comparative advantage is studied in Freund and Pierola (2015, REStat)
Source: based on Exporter Dynamics Database version 2.0.
Entrant survival is higher in the presence of lower trade costs and larger networks
Survival rates of new exporters are higher in lower trade costs economies
Note: Average for 2006-2008 period
ALB
BEL
BFA
BGD
BOL
BRA
BWA
CHL
COL
CRI
DNKDOM
ECU
ESP
GAB
GEO GTMHRV
IRN
JOR
KEN
KGZ
KHM
LAO
MAR
MDGMKD
MLI
MUS
MWI
NIC
NOR NZL
PAKPERPRT
PRY
RWA
SEN
SLV
SVN
TUR
TZA
UGA
URY
ZAF
0
100
02
00
03
00
04
00
0
Cost to
exp
ort
(U
S$ p
er
con
tain
er)
.2 .3 .4 .5 .6 .7First-year Entrant Survival Rate
Source: based on Exporter Dynamics Database version 2.0.
(1) (2) (3) (4)
Lagged Ln (Number of Exporters) 0.026*** 0.029*** 0.026*** 0.030***
(0.000) (0.000) (0.000) (0.000)
Year Fixed Effects Yes Yes Yes Yes
HS 2-Digit Fixed Effects Yes
Destination Fixed Effects Yes
HS 2-Digit-Destination Fixed Effects Yes
Observations 719,409 719,409 719,409 719,409
R-squared 0.015 0.047 0.027 0.098
First-Year Entrant Survival Rate
Regressions based on measures
at exporting country-HS 2-digit-
destination-year level Presence of other exporters of same product to same market helps survival of new exporters
Sources of the great trade collapse
• The trade collapse resulting from the global financial crisis was entirely driven by the intensive margin (mean exporter size) • After accounting for countries’ different degrees of distress from
the crisis and for sectoral demand and supply shocks
Source: based on Exporter Dynamics Database version 2.0.
Growth in
Total Exports
Growth in
Number of
Exporters
Growth in
Mean Exports
per Exporter
(1) (2) (3)
Dummy for Global Financial Crisis Year -0.254*** -0.024 -0.230***
(0.030) (0.014) (0.023)
Exporting Country Fixed Effects Yes Yes Yes
HS 2-Digit Fixed Effects Yes Yes Yes
Observations 31,242 31,242 31,242
R-squared 0.018 0.026 0.015
Regressions based on measures
at exporting country-HS 2-digit-year level
Number of Exporters, 9%
Average size, 91%
Export growth decomposition during the collapse
How do export-sector characteristics vary with country size and stage of development?
Positive correlations between number,
size concentration of
exporters and
either GDP per capita or GDP
Source: based on Exporter Dynamics Database version 2.0. following Fernandes, Freund and Pierola (2015, JDE)
ALB
BEL
BFA
BGD
BGR
BOL
BRA
BWA
CHL
CIVCMR
COL
CRI
DEU
DNK
DOMECU
EGY
ESP
EST
ETH
GAB
GEO
GIN
GTM
HRVIRN
JOR
KEN
KGZ
KHM
KWT
LAO
LBNMAR
MDG
MEX
MKD
MLI
MUS
MWI
NER
NIC
NOR
NPL
NZLPAK
PER
PRT
PRYQOS
ROU
RWASEN
SLV
SVN
SWE
SWZ
THA
TLS
TUR
TZA
UGA
URY
YEM
ZAF
ZMB
24
68
10
12
Ln
Num
ber
of E
xp
ort
ers
7 8 9 10 11Ln GDPpc
Number of Exporters - GDPpc
ALB
BEL
BFA
BGD
BGR
BOL
BRA
BWA
CHL
CIVCMR
COL
CRI
DEU
DNK
DOMECU
EGY
ESP
EST
ETH
GAB
GEO
GIN
GTM
HRVIRN
JOR
KEN
KGZ
KHM
KWT
LAO
LBN MAR
MDG
MEX
MKD
MLI
MUS
MWI
NER
NIC
NOR
NPL
NZL PAK
PER
PRT
PRYQOS
ROU
RWASEN
SLV
SVN
SWE
SWZ
THA
TLS
TUR
TZA
UGA
URY
YEM
ZAF
ZMB
24
68
10
12
Ln
Num
ber
of E
xp
ort
ers
22 24 26 28 30Ln GDP
Number of Exporters - GDP
ALB
BEL
BFA BGD
BGR
BOL
BRA
BWA
CHLCIV
CMRCOL
CRI
DEU
DNK
DOMECUEGYESP
EST
ETH
GAB
GEO
GIN
GTM
HRVIRN
JOR
KEN
KGZ
KHM
KWT
LAO
LBN
MAR
MDG
MEX
MKD
MLI
MUSMWI
NER
NIC
NOR
NPL
NZL
PAK
PER
PRT
PRY
QOS
ROU
RWA
SENSLV
SVN
SWE
SWZ
THA
TLS TUR
TZA
UGA
URY
YEM
ZAF
ZMB
12
13
14
15
16
17
Ln
Me
an
Exp
ort
s p
er
Exp
ort
er
7 8 9 10 11Ln GDPpc
Mean Exports per Exporter - GDPpc
ALB
BEL
BFA BGD
BGR
BOL
BRA
BWA
CHLCIV
CMRCOL
CRI
DEU
DNK
DOMECU EGYESP
EST
ETH
GAB
GEO
GIN
GTM
HRV IRN
JOR
KEN
KGZ
KHM
KWT
LAO
LBN
MAR
MDG
MEX
MKD
MLI
MUSMWI
NER
NIC
NOR
NPL
NZL
PAK
PER
PRT
PRY
QOS
ROU
RWA
SENSLV
SVN
SWE
SWZ
THA
TLS TUR
TZA
UGA
URY
YEM
ZAF
ZMB
12
13
14
15
16
17
Ln
Me
an
Exp
ort
s p
er
Exp
ort
er
22 24 26 28 30Ln GDP
Mean Exports per Exporter - GDP
ALB
BEL
BFA
BGD
BGRBOL
BRA
BWA
CHL
CIVCMRCOLCRI
DEU
DNK
DOM
ECUEGY
ESP
ETH
GAB
GEO
GIN
GTM
HRV
IRN
JORKEN
KGZ
KHM
KWTLAO
LBN
MAR
MDG
MEX
MKD
MLI
MUS
MWINER
NIC
NOR
NPL
NZL
PAK
PER
PRTPRYQOS
ROU
RWA
SEN
SLV
SVN
SWE
SWZ
THA
TLS
TUR
TZA
UGAURY
YEM
ZAF
ZMB
.4.6
.81
Sha
re o
f T
op
5%
Export
ers
7 8 9 10 11Ln GDPpc
Share of Top 5% Exporters - GDPpc
ALB
BEL
BFA
BGD
BGRBOL
BRA
BWA
CHL
CIVCMRCOLCRI
DEU
DNK
DOM
ECU EGY
ESP
ETH
GAB
GEO
GIN
GTM
HRV
IRN
JORKEN
KGZ
KHM
KWTLAO
LBN
MAR
MDG
MEX
MKD
MLI
MUS
MWINER
NIC
NOR
NPL
NZL
PAK
PER
PRTPRYQOS
ROU
RWA
SEN
SLV
SVN
SWE
SWZ
THA
TLS
TUR
TZA
UGAURY
YEM
ZAF
ZMB
.4.6
.81
Sha
re o
f T
op
5%
Export
ers
22 24 26 28 30Ln GDP
Share of Top 5% Exporters - GDP
Establishing the robustness of those correlations
• Larger economies and more developed economies have: more exporters, larger exporters, and more concentration in the top 5% of firms • Even after controlling for sectoral composition of exports, differences
across destination markets, and cyclical effects
Ln Number
of Exporters
Ln Mean
Exports per
Exporter
Share of Top
5%
Exporters
Ln Number
of Exporters
Ln Mean
Exports per
Exporter
Share of Top
5%
Exporters
Ln Number
of Exporters
Ln Mean
Exports per
Exporter
Share of Top
5%
Exporters
(1) (2) (3) (4) (5) (6) (7) (8) (9)
Ln GDPpc 0.479*** 0.463*** 0.045*** 0.441*** 0.173** 0.060*** 0.271** 0.233*** 0.028***
(0.098) (0.093) (0.012) (0.092) (0.067) (0.009) (0.102) (0.064) (0.009)
Ln GDP 0.660*** 0.408*** 0.040*** 0.783*** 0.280*** 0.038*** 0.416*** 0.341*** 0.034***
(0.067) (0.065) (0.007) (0.071) (0.058) (0.006) (0.072) (0.049) (0.006)
HS 2-Digit Fixed
EffectsYes Yes Yes
Destination Fixed
EffectsYes Yes Yes
Bilateral Gravity
CovariatesYes Yes Yes Yes Yes Yes
HS 2-Digit-
Destination Fixed
Effects
Yes Yes Yes
Year Fixed Effects Yes Yes Yes Yes Yes Yes Yes Yes Yes
Observations 33,488 33,459 22,670 46,162 45,716 24,751 599,299 599,299 131,613
R-squared 0.716 0.441 0.316 0.736 0.318 0.307 0.466 0.394 0.419
Regressions for measures
at exporting country-HS 2-digit-year
level
Regressions for measures
at exporting country-destination-year
level
Regressions for measures
at exporting country-HS 2-digit-
destination-year level
Source: based on Exporter Dynamics Database version 2.0. following Fernandes, Freund and Pierola (2015, JDE)
What is the magnitude of the effects?
• Relative to a country at the 25th percentile of the GDP per capita distribution (Cameroon), a country at the 75th percentile of the GDP per capita distribution (Mexico) has:
• 87 percent larger number of exporters • 84 percent larger mean exports per exporter • 8.2 percentage points larger share of exports
accounted for by the top 5% of exporters
How do exporter dynamics vary with country size and stage of development?
Negative correlations between
exporter turnover and positive
correlations between entrant survival
and either GDP per capita
or GDP
Source: based on Exporter Dynamics Database version 2.0. following Fernandes, Freund and Pierola (2015, JDE)
ALB
BEL
BFA
BGD
BGR
BOL
BRA
BWA
CHLCIV
CMR
COLCRI
DEUDNK
DOM
ECU
EGY
ESP
EST
ETH GAB
GEO
GIN
GTMHRV
IRN
JORKEN
KGZ
KHM
KWT
LAO
LBNMAR
MDG MEXMKD
MLI
MUS
MWI
NER
NIC
NOR
NPL
NZLPAK
PER
PRT
PRY
QOS
ROU
RWA
SEN
SLV
SVNSWE
TLS
TUR
TZAUGA
URY
YEM
ZAF
ZMB
0.2
.4.6
Entr
y R
ate
7 8 9 10 11Ln GDPpc
Entry Rate - GDPpc
ALB
BEL
BFA
BGD
BGR
BOL
BRA
BWA
CHLCIV
CMR
COLCRI
DEUDNK
DOM
ECU
EGY
ESP
EST
ETHGAB
GEO
GIN
GTMHRV
IRN
JORKEN
KGZ
KHM
KWT
LAO
LBNMAR
MDG MEXMKD
MLI
MUS
MWI
NER
NIC
NOR
NPL
NZL PAK
PER
PRT
PRY
QOS
ROU
RWA
SEN
SLV
SVNSWE
TLS
TUR
TZAUGA
URY
YEM
ZAF
ZMB
0.2
.4.6
Entr
y R
ate
22 24 26 28 30Ln GDP
Entry Rate - GDP
ALB
BEL
BFA
BGD
BGR
BOL
BRA
BWA
CHLCIV
CMR
COL
CRI
DEU
DNK
DOM
ECU
EGY
ESPEST
ETH
GAB
GEO
GIN
GTMHRV
IRN
JOR
KEN
KGZ
KHM
KWT
LAO
LBNMAR
MDG MEXMKD
MLI
MUS
MWI
NER
NIC
NOR
NPL
NZL
PAK
PER
PRT
PRY
QOS
ROU
RWA
SEN
SLV
SVNSWE
TLS
TUR
TZA
UGA
URYYEM
ZAF
ZMB
.1.2
.3.4
.5.6
Exi
t R
ate
7 8 9 10 11Ln GDPpc
Exit Rate - GDPpc
ALB
BEL
BFA
BGD
BGR
BOL
BRA
BWA
CHLCIV
CMR
COL
CRI
DEU
DNK
DOM
ECU
EGY
ESPEST
ETH
GAB
GEO
GIN
GTMHRV
IRN
JOR
KEN
KGZ
KHM
KWT
LAO
LBNMAR
MDG MEXMKD
MLI
MUS
MWI
NER
NIC
NOR
NPL
NZL
PAK
PER
PRT
PRY
QOS
ROU
RWA
SEN
SLV
SVNSWE
TLS
TUR
TZA
UGA
URYYEM
ZAF
ZMB.1
.2.3
.4.5
.6
Exi
t R
ate
22 24 26 28 30Ln GDP
Exit Rate - GDP
ALB
BEL
BFA
BGD
BGR
BOL
BRA
BWACHL
CIV
CMR
COL
CRI
DEU
DNK
DOM
ECU
EGY
ESP
EST
ETH
GABGEO
GIN
GTM HRVIRN
JOR
KEN
KGZ
KHM
LAO
LBN
MAR
MDG
MEX
MKDMLI
MUS
MWI
NER
NIC
NOR
NPL
NZL
PAK
PER
PRT
PRY
QOSROU
RWA
SEN
SLV SVN
SWE
TLS
TUR
TZA
UGA
URY
YEM
ZAF
ZMB
.2.3
.4.5
.6.7
Surv
ival R
ate
of E
ntr
an
ts
7 8 9 10 11Ln GDPpc
Survival Rate of Entrants - GDPpc
ALB
BEL
BFA
BGD
BGR
BOL
BRA
BWACHL
CIV
CMR
COL
CRI
DEU
DNK
DOM
ECU
EGY
ESP
EST
ETH
GABGEO
GIN
GTMHRVIRN
JOR
KEN
KGZ
KHM
LAO
LBN
MAR
MDG
MEX
MKDMLI
MUS
MWI
NER
NIC
NOR
NPL
NZL
PAK
PER
PRT
PRY
QOSROU
RWA
SEN
SLVSVN
SWE
TLS
TUR
TZA
UGA
URY
YEM
ZAF
ZMB
.2.3
.4.5
.6.7
Surv
ival R
ate
of E
ntr
an
ts
22 24 26 28 30Ln GDP
Survival Rate of Entrants - GDP
Establishing the robustness of these correlations
• In more developed economies, exporter entry and exit rates are lower while first-year survival of entrants is higher • Even after controlling for sectoral composition of exports,
differences across destination markets, and cyclical effects
Entry
Rate
Exit
Rate
Entrant
Survival
Rate
Net Entry
Rate
Turnover
Rate
Entry
Rate
Exit
Rate
Entrant
Survival
Rate
Net Entry
Rate
Turnover
Rate
Entry
Rate
Exit
Rate
Entrant
Survival
Rate
Net Entry
Rate
Turnover
Rate
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15)
Ln GDPpc -0.063*** -0.065*** 0.031*** 0.003 -0.120*** -0.043*** -0.042*** 0.018* -0.001 -0.071*** -0.050*** -0.054*** 0.030** 0.005* -0.074***
(0.011) (0.011) (0.009) (0.002) (0.022) (0.010) (0.010) (0.009) (0.003) (0.019) (0.009) (0.011) (0.013) (0.003) (0.019)
Ln GDP -0.005 -0.003 0.002 -0.002 -0.001 -0.034*** -0.033*** 0.025*** 0.001 -0.035*** -0.017** -0.015** 0.013** -0.001 0.043***
(0.007) (0.007) (0.005) (0.002) (0.016) (0.007) (0.007) (0.005) (0.002) (0.012) (0.006) (0.007) (0.005) (0.002) (0.013)
HS 2-Digit Fixed
EffectsYes Yes Yes Yes Yes
Destination Fixed
EffectsYes Yes Yes Yes Yes
Bilateral Gravity
CovariatesYes Yes Yes Yes Yes Yes Yes Yes Yes Yes
HS 2-Digit-
Destination Fixed
Effects
Yes Yes Yes Yes Yes
Year Fixed Effects Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Observations 31,465 31,412 26,212 30,805 30,805 48,658 48,141 39,777 44,279 44,279 883,355 868,703 643,804 695,860 695,860
R-squared 0.234 0.242 0.131 0.008 0.249 0.202 0.194 0.105 0.011 0.143 0.147 0.149 0.096 0.018 0.181
Regressions for measures
at exporting country-HS 2-digit-year level
Regressions for measures
at exporting country-destination-year level
Regressions for measures
at exporting country-HS 2-digit-destination-year level
Source: based on Exporter Dynamics Database version 2.0. following Fernandes, Freund and Pierola (2015, JDE)
What is the magnitude of the effects?
• Relative to a country at the 25th percentile of the GDP per capita distribution (Cameroon), a country at the 75th percentile of the GDP per capita distribution (Mexico) has:
• 11 percentage points lower exporter entry and exit
rates • 6 percentage points higher first-year survival rate of
entrants into export markets
Lessons from these facts
• Exporter dynamics change as countries get richer • In developing countries, there is high turnover with many
firms entering export markets and exiting almost immediately • As countries develop, entrant survival is higher as fewer but
more resilient exporters enter the market
• Larger exporters and more concentration at the top of the
exporter-size distribution in richer countries is consistent with allocative efficiency in export markets improving as countries develop • In developing countries, distortions to resource allocation
inhibit the emergence of very large firms resulting in a “truncated top” (rather than a “missing middle”)
What other uses for the EDD?
• The EDD has supported external research – 1,112 downloads of the EDD in FY2014 – EDD used for research on the impact of FDI promotion policies, banking crises,
etc.
• The EDD has been used in WB analytical work and policy advice on trade and competitiveness – Reports on Bangladesh, Brazil, Dominican Republic, Ethiopia, Georgia, Malawi,
Peru, South Africa, Uruguay – Regional reports in SSA, MENA, LAC
• The EDD can help answer understand the relationship between exporter dynamics and policy factors such as: – Trade costs (logistics costs, customs delays) – Trade barriers (tariffs, non-tariff measures, contingent protection measures) – Business environment or economic shocks (exchange rates)
• The EDD can be used as a tool for the impact evaluation of trade facilitation reforms and export promotion programs => Nepal
Thank You!
