@TechReport{iza:izadps:dp7346,
            	author={Naudé, Wim and Gries, Thomas and Bilkic, Natasa},
            	title={Firm-Level Heterogeneity and the Decision to Export: A Real Option Approach},
            	year={2013},
	month={Apr},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={7346},
            	url={https://www.iza.org/publications/dp7346},
	abstract={In "new" new international trade theory, whether firms export or not are determined by their productivity. These models assume that firms enter a market to find their productivity levels revealed to them as in a lottery. In this paper we propose an alternative way to model whether firms export or not, namely as a firm-level decision akin to an investment decision with a real option value. We show that endogenizing the export decision is consistent with patterns of productivity and exporting reported in the empirical literature.},
	keywords={international new ventures;firm-level heterogeneity;start-ups;stochastic dynamic programming;trade;exports;productivity;real option theory;investment;firms;international entrepreneurship},
            }