Export Survival in Global Production Chains

This paper focuses on the survival capacity of the trade flows in international production networks. Firstly, we emphasize that these trade relationships are longer-lived than other trade flows. Secondly, we try to delimit the factors that explain this using time-discrete duration models which contr...

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Bibliographic Details
Authors: Díaz Mora, María del Carmen, Córcoles González, David, Gandoy Juste, Rosario
Format: article
Publication Date:2015
Country:España
Institution:Universidad de Castilla-La Mancha
Repository:RUIdeRA. Repositorio Institucional de la UCLM
OAI Identifier:oai:ruidera.uclm.es:10578/19873
Online Access:http://hdl.handle.net/10578/19873
Access Level:Open access
Keyword:International Production Networks
Export Survival
Time-Discrete Duration Models
Redes internacionales de producción
Supervivencia de exportación
Modelos de duración discreta
Description
Summary:This paper focuses on the survival capacity of the trade flows in international production networks. Firstly, we emphasize that these trade relationships are longer-lived than other trade flows. Secondly, we try to delimit the factors that explain this using time-discrete duration models which control for the existence of unobservable heterogeneity. We find that variables such as initial value of the trade flow, geographic and product diversification, institutional quality, geographic, linguistic and economic proximity and membership in a regional integration agreement play an important role for stability of global production systems. Our results highlight that the high sunk entry costs and the need for trust and reliability in global value chains are factors dissuading radical alterations in the network configuration.