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Extant studies examine the role of financial constraints on the international activity of the firms. However, they are mostly focused on the manufacturing sector, traditionally perceived as tradable. The literature recently recognized the growing role of service sector in international trade,...
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export experience in a market are more likely to source service inputs from there. We rationalize this fact in a model where … firms are initially uncertain about how successful they are as exporters, but learn their export profitability as they keep … they become sufficiently confident about their export prospects, i.e., once they acquire enough export experience. More …
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