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Entry on difficult export markets by Chinese domestic firms: the role of foreign export spillovers

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  • Florian Mayneris
  • Sandra Poncet

Abstract

In this study, we explore how the intensity of foreign export spillovers in China varies depending on the difficulty of entry on export markets. We rely on different proxies to define what a “difficult” country is and we find that the presence of surrounding foreign exporting firms helps domestic ones to start exporting, especially when destination countries are difficult. While on average exposure to foreign exporters is associated with a 10% increase of the probability that domestic firms from the same province start exporting the year after, the figure is around 50% higher when the targeted destination country is identified as difficult. Our results are consistent with the idea that exposure to foreign exporters helps to reduce the fixed cost of creating new trade linkages. Our finding hence suggests that the increasing presence of foreign exporting firms in China might contribute to the diversification of Chinese domestic firms? exports towards more difficult and previously inaccessible destinations.

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Bibliographic Info

Paper provided by CEPII research center in its series Working Papers with number 2011-32.

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Date of creation: Dec 2011
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Handle: RePEc:cii:cepidt:2011-32

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Keywords: EXPORT SPILLOVERS; CHINA; AGGLOMERATION;

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  1. Guillaume Gaulier & Soledad Zignago, 2010. "BACI: International Trade Database at the Product-Level. The 1994-2007 Version," Working Papers 2010-23, CEPII research center.
  2. Fleurbaey,Marc & Maniquet,François, 2011. "A Theory of Fairness and Social Welfare," Cambridge Books, Cambridge University Press, number 9780521715348.
  3. Hess, Wolfgang & Persson, Maria, 2010. "Exploring the Duration of EU Imports," Working Papers 2010:4, Lund University, Department of Economics.
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  5. Pamina Koenig & Florian Mayneris & Sandra Poncet, 2010. "Local Export spillovers in France," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00633782, HAL.
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  8. Wolfgang Hess & Maria Persson, 2012. "The duration of trade revisited," Empirical Economics, Springer, vol. 43(3), pages 1083-1107, December.
  9. Araujo, Luis & Mion, Giordano & Ornelas, Emanuel, 2012. "Institutions and Export Dynamics," CEPR Discussion Papers 8809, C.E.P.R. Discussion Papers.
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  12. Frances Ruane & Julie Sutherland, 2005. "Foreign Direct Investment and Export Spillovers: How Do Export Platforms Fare?," The Institute for International Integration Studies Discussion Paper Series iiisdp058, IIIS.
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Cited by:
  1. MAYNERIS, Florian & PONCET, Sandra, 2011. "French firms at the conquest of Asian markets: the role of export spillovers," CORE Discussion Papers 2011064, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

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