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Geographical and industrial spillovers in entry decisions across export markets

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  • Jesús A. Mu Sepúlveda
  • Diego Rodr z

Abstract

This article addresses sequential entry decisions in export markets. It focuses on externalities derived from previous export activity in countries close to those for which a potential entry decision is made ( geographical spillovers ) and externalities derived from previous presence of other firms in the same industry ( industrial spillovers ). The empirical analysis uses Spanish microdata for the period 2000-2010 in a firm decision model that also integrates country and industry characteristics. The results suggest that these two types of spillovers have a positive effect in explaining entry decisions in new export markets, though both are smaller in magnitude than the effects coming from previous presence in the same specific destination.

Suggested Citation

  • Jesús A. Mu Sepúlveda & Diego Rodr z, 2015. "Geographical and industrial spillovers in entry decisions across export markets," Applied Economics, Taylor & Francis Journals, vol. 47(39), pages 4168-4183, August.
    • Handle: RePEc:taf:applec:v:47:y:2015:i:39:p:4168-4183
    DOI: 10.1080/00036846.2015.1026582
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    1. Bastos, Paulo & Silva, Joana, 2010. "The quality of a firm's exports: Where you export to matters," Journal of International Economics, Elsevier, vol. 82(2), pages 99-111, November.

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