Camila F. S. Campos
New exporters tend to exit markets more often. Despite signicant sunk costs of exporting, the rate of survival in the rst year of a product in a new market is very low. In this paper, we use detailed export and import transactions panel data from Colombia to examine how import activity by exporters increases export survival. We use the lagged importer’s exchange rate index as an instrument for imports and control for dierent types of synergies and for rm, product and destination-year xed eects. The main result shows that imports signicantly increase the probability of export survival after the rst year. The volume imported by an exporter siginicantly increases the probability of survival, notably through the diversication margin. Diversication, here understood as the number of products imported and the number of origins of imports, positively impacts the probability of survival at the moment of entry in a new market.