Search and learning in export markets: Evidence from interviews with Colombian exporters

Abstract

Why do most new exporters quickly abandon foreign markets after shipping very small amounts? And why do surviving exporters ramp their sales up gradually over a period of many years? A large literature uses models and customs records to address these questions. We complement these studies by conducting case study interviews with a small set of Colombian manufacturers. Inter alia, we find that establishing a lasting foreign market presence involves a costly search and learning process, with valuable knowledge coming from initial failures.