In this chapter we look at the role of export experience in influencing the firm’s sourcing decision regarding these key inputs. We show that greater experience is related to less domestic outsourcing. We do so by exploiting very detailed firm-level data from France, which include a long panel of balance sheet data, together with transaction-level import/export information. To reduce the magnitude of the fixed cost of exports, firms tentatively enter new markets (or introduce new products in the same market), and commit greater resources only once uncertainty about the destination market profitability has been resolved (see, eg, Albornoz et al. 2012).
BERLINGIERI, G. and MARCOLIN, L. (2018). Export Dynamics and the Sourcing of Service Inputs. In: Wilhelm Kohler, Erdal Yalcin eds. Developments in Global Sourcing. 1st ed. Cambridge, Massachusetts: MIT Press, pp. 145-168.