16.03.07
Learning, Networks and Sunk Cost in International Trade: Evidence from Norwegian Seafood Exports
Evidence from Norwegian Seafood Exports
NUPI-rapport | Oslo, NUPI | 107 sider |
ISBN 82-7002-182-2
Rapporten analyserer kostnadssammensetning, læring og stordriftsfordeler i norsk fiskeeksport.
>> Summary
Based on new survey data for 81 Norwegian seafood exporters, the report examines the composition and magnitude of different types of trade costs, ranging from tariffs and transport costs to other sales costs. The results suggest that there are economies of scale in the exporting activity, due to fixed costs of market entry, learning through experience, and externalities between firms so that one exporter benefits from the others via learning or joint marketing effects. Seafood exports strongly rely on personal networks. On the whole, however, fixed sales costs for seafood exports are small, due to these products being relatively homogeneous. In spite of this, such costs matter for the choice of markets and magnitude of trade. The report analyses how costs vary across products, firms and markets. For seafood exports, traditional trade barriers such as tariffs and transport costs are more important than the sunk costs. transport costs do not increase proportionally with geographic distance, mainly since this is not the case for sea transports.
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