We measure the contribution of fi?rm-speci?fic effects to overall sales variation within a destination and fi?nd it remarkably low. Our empirical decomposition is structurally motivated by a heterogeneity model of exporting involving destination-speci?fic, fi?rm-specifi?c, and fi?rm-destination-specifi?c latent effects with incidental truncation. We use a highly detailed dataset with exports by products and destinations for all Danish manufacturing fi?rms. We fi?nd the contribution of fi?rm-specifi?c heterogeneity to within-destination sales variation varies greatly across HS6 products, and that for the median product it drives 31% of the sales variation. When we remove fi?rst-time exports from our sample, the median value increases to 40%, implying that fi?rm-destination-speci?fic effects are most important the fi?rst year. We conclude that while fi?rm-speci?fic productivity can account for some of the variation, the majority is explained by fi?rm-destination-speci?fic heterogeneity sources such as fi?rm-destination-specifi?c demand.
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