An experience curve explanation of export expansion

Various explanatory variables have been identified in past research as determinants of the export behavior of firms. This article proposes that while many factors contribute to export behavior, experience curve effects are a major variable explaining the international activities of firms. The research reported here finds that younger firms are much more faborably disposed toward and active in international marketing than older firms. This is attributed to the competitive domestic situation younger firms encounter. Since older firms are often well entrenched in the domestic market, exporting may be the only alternative available to younger firms to obtain the production expertise and efficiency necessary to become a successful domestic competitor.