We argue that, under certain conditions, firms consider exports as a substitute for domestic demand. Our econometric … model for six euro area countries suggests domestic demand and capacity constraints as additional variables for export … developments are relevant for short-run export dynamics particularly during more extreme stages of the business cycle. A …

and Portugal) the results underscore the empirical validity of the export hysteresis under uncertainty model. …We argue that, under certain conditions described by a sunk cost hysteresis model, firms consider exports as a … export market and vice versa takes place in a smooth manner. Areas of weak reaction of exports to changes in domestic demand …

Traditional specifications of export equations incorporate foreign demand as a demand pull factor and the real exchange … rate as a relative price variable. However, such standard export equations have failed to explain the export performance of … euro area countries during the crisis period. In particular, the significant gains in export market shares in a number of …

Traditional specifications of export equations incorporate foreign demand as a demand pull factor and the real exchange … rate as a relative price variable. However, such standard export equations have failed to explain the export performance of … euro area countries during the crisis period. In particular, the significant gains in export market shares in a number of …