Explaining Intermittent Exporting : Exit and Conditional Re-Entry in Export Markets

Intermittent exporters exit and subsequently re-enter exporting. We model this process of exit and conditional re-entry using an extensive dataset of French manufacturing firms from 1997 to 2007. Smaller and less productive firms are more likely to exit exporting, and react more strongly to changes in both domestic and foreign markets than larger firms. Exit and re-entry are closely linked. Firms with a low exit probability also have a high likelihood of re-entry, and vice versa. However, the way in which firms react to market conditions at the time of exit matters greatly in determining the likelihood of re-entry. Our results help explain the intermittent exporting behavior of (mainly) small firms, and suggest that history or ‘heritage' matters in export re-entry: re-internationalisation cannot be considered in isolation from de-internationalisation