Export Mode and Market Entry Costs

This paper provides intangible trade data for an important U.S. export industry during a period when official data are very thin. It examines what modes firms use to export intangible assets. It uses a novel data source that provides very detailed information on export modal choice and market entry costs. Motion picture exporters use different modes of entry across markets. Exporters use more intensive modes, those that require them to pay a higher share of distribution costs, in large markets. Markets with the largest sales are more costly to serve, since they require more extensive sales office networks. While costs are higher in large markets, they are compensated by higher revenue.