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Is Export Spillover Localized in China

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  • Qun Bao
  • Min Shao
  • Ligang Song

Abstract

The hypothesis of localized export spillover has been widely supported by the previous studies. Based on Chinese firm-level data of more than 47,000 firms from 2000 to 2006, this paper investigates whether export spillover is localized in China. Drawing on the idea of revealed comparative advantage, six export spillover indicators are constructed to capture both the within- and between- provinces, cities as well as industries spillover effects. The multinomial logit model estimation results show that there is no sign of localized spillover effects despite the fact that domestic firms gain from export spillovers due to geographic and industrial agglomeration effects. This is especially true for those new entrants to export markets. The finding indicates that there may be export congestions resulting from over-agglomeration of local exporters due to the rapid export expansion in China.

Suggested Citation

  • Qun Bao & Min Shao & Ligang Song, 2014. "Is Export Spillover Localized in China," Review of Development Economics, Wiley Blackwell, vol. 18(2), pages 218-230, May.
    • Handle: RePEc:bla:rdevec:v:18:y:2014:i:2:p:218-230
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    File URL: http://hdl.handle.net/10.1111/rode.12080
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    3. Kiyoyasu Tanaka & Yoshihiro Hashiguchi, 2015. "Spatial Spillovers from Foreign Direct Investment: Evidence from the Yangtze River Delta in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 23(2), pages 40-60, March.
    4. Jaroslaw Michal Nazarczuk & Stanislaw Uminski & Tomasz Brodzicki, 2017. "Local determinants of the spatial distribution of exporters in Poland: the role of FDI," Working Papers 1701, Instytut Rozwoju, Institute for Development.
    5. Qun Bao & Ninghua Ye & Ligang Song, 2016. "Congested Export Spillover in China," Review of Development Economics, Wiley Blackwell, vol. 20(1), pages 272-282, February.

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