International Journal of Emerging Markets· 2026Q1
Firm growth, age and the intensity of international trade: evidence from Ecuadorian manufacturing firms
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- Q1SCImago
- 2026year
Short summary
Young Ecuadorian manufacturing firms show a negative or weak association between trade intensity and growth in lower quantiles, but this becomes positive and strongest among high-growth firms.
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Key points
- The relationship between trade intensity and firm growth varies by firm age and across the growth distribution in Ecuadorian manufacturing.
- Young firms' trade intensity is negatively associated with growth in lower quantiles but positively associated in upper quantiles.
- The strongest positive effects of trade intensity on growth for young firms are concentrated among high-growth firms.
- Findings are consistent with heterogeneity in learning, adjustment costs, and capability accumulation.
AI-generated from the title and abstract; the full text is not read.
Abstract
Purpose This paper examines whether firm age moderates the relationship between international trade intensity and firm performance, and whether this relationship differs across the firm-growth distribution. Design/methodology/approach Using a comprehensive administrative panel of active formal manufacturing firms in Ecuador (2007–2018), we estimate the association between trade intensity and firm growth outcomes and test moderation by firm age. We complement mean-based estimates with quantile regressions to capture heterogeneous effects across low- and high-growth firms. Findings The results indicate that the association between international trade intensity and firm growth differs by firm age and across the conditional growth distribution. The Young × trade-intensity differential is generally weak or negative in the lower quantiles and becomes positive in the upper quantiles, with the strongest differences concentrated among high-growth firms. These patterns are consistent with heterogeneity in learning, adjustment costs, and capability accumulation. Research limitations/implications The findings pertain to the population of formal manufacturing firms in Ecuador and may not directly generalize to other sectors or informal firms. Future research could test whether similar lifecycle-based heterogeneity holds in other emerging-market contexts. Practical implications Policies and managerial strategies that facilitate early-stage firms' access to export and import channels – alongside capability-building support – may enhance growth outcomes, especially for high-potential young firms. Originality/value The study contributes by documenting firm-age-based and growth-heterogeneity boundary conditions in the trade–performance relationship using an unusually comprehensive emerging-market manufacturing panel.
The authors' abstract, as published at the source. International Journal of Emerging Markets, 2026 · DOI ↗
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Economics and EconometricsEconomics, Econometrics and Finance