Performance and Survival in International Markets

Successful entry into export markets and the subsequent survival of export flows are crucial if a country is to grow and diversify its export base. The accumulated experience of firms that export a particular product or serve a specific destina-tion can provide valuable information. When more of this export-relevant information is available to exporters, export flows have better chances of survival in new markets. However, many developing countries face two problems when it comes to acquiring this information. First, and most important, is that firms do not have incentives to share information. Information constitutes part of their competitive advantage, and sharing it may weaken their competitiveness. The second major problem is that this type of information is often absent, lacking, or underutilized. There is no clear mapping of available resources or activities that are actually profitable. Discovery is costly, and chances of export survival are lower. This note focuses on the role of information in the survival of Georgia’s exports, unveiling a robust association between product-specific and destination-specific information and export survival. These results suggest that there are gains to be made through fostering greater interfirm dialogue—especially dialogue that generates market- and product-specific information—to increase the changes of exports ’ survival in Georgia. How Does Information Help Export Survival? Entering and surviving in a new market is tricky business. As the literature points out, exporting can be an extremely risk