Import experience and the post-entry performance of first-time exporters

Using the universe of Spanish first-time exporters selling manufactured products over the period 1997-2018, we show that import experience is associated with higher survival rates in the export markets, and conditioning on survival, a higher growth rate of their exports. In both cases, the highest impact is obtained when previous import experience occurs within one year before firms start exporting. Import experience improves general knowledge about foreign markets but it is not market-specific. Post-entry success in terms of survival and persistent growth rises if new exporters are large importers and if they buy intermediate inputs from competitive foreign suppliers.