Export starters in German manufacturing industries thrive despite small size.
The article looks at small firms in German manufacturing that started exporting between 1998 and 2002. About 30-40% of them became continuous exporters. Even though these new exporters only contributed a small amount to total exports at the beginning, those who were still exporting after 5 years had a higher share of exports in total sales. Surprisingly, the study found that initial productivity and firm size did not predict survival in the export market. However, starting with a higher share of exports in total sales increased the chances of staying in the export market.