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Export performance of Chinese domestic firms: the role of foreign export spillovers

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  • MAYNERIS, Florian

    ()
    (Université catholique de Louvain, CORE and IRES, B-1348 Louvain-la-Neuve, Belgium)

  • PONCET, Sandra

    ()
    (Paris School of Economics, Université Paris 1 Panthéon-Sorbonne and CEPII, France)

Abstract

We investigate how the proximity to multinational exporters influences the creation of new export linkages (extensive margin of trade) by domestic firms in China. Using panel data from Chinese customs for 1997-2007, we show that domestic firms’ capacity to start exporting new varieties to new markets positively responds to the export activity of neighboring foreign firms for that same product-country pair. We find that foreign export spillovers are limited to ordinary trade activities. No foreign export spillovers are found for processing trade. More, export spillovers are stronger for sophisticated products indicating that proximity to foreign exporters may help domestic exporters to upgrade their exports. However we observe that foreign export spillovers are weaker when the technology gap between foreign and domestic firms is large, suggesting that upgrading may not occur when foreign firms have already a strong edge.

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Bibliographic Info

Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2011008.

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Date of creation: 01 Feb 2011
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Handle: RePEc:cor:louvco:2011008

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Keywords: export performance; spillovers; FDI; sophistication;

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  1. Pamina Koenig & Florian Mayneris & Sandra Poncet, 2009. "Local Export Spillovers in France," Working Papers 2009-18, CEPII research center.
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  3. Tomas Havranek & Zuzana Irsova, 2010. "Which Foreigners are Worth Wooing? A Meta-Analysis of Vertical Spillovers from FDI," William Davidson Institute Working Papers Series wp996, William Davidson Institute at the University of Michigan.
  4. Bruce A. Blonigen & Alyson C. Ma, 2010. "Please Pass the Catch-Up: The Relative Performance of Chinese and Foreign Firms in Chinese Exports," NBER Chapters, in: China's Growing Role in World Trade, pages 475-509 National Bureau of Economic Research, Inc.
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Cited by:
  1. Jarreau, Joachim & Poncet, Sandra, 2012. "Export sophistication and economic growth: Evidence from China," Journal of Development Economics, Elsevier, vol. 97(2), pages 281-292.
  2. Bas, Maria & Causa, Orsetta, 2013. "Trade and product market policies in upstream sectors and productivity in downstream sectors: Firm-level evidence from China," Journal of Comparative Economics, Elsevier, vol. 41(3), pages 843-862.
  3. Olivier CADOT & Ana FERNANDES & Julien GOURDON & Aaditya MATTOO, 2013. "Are the Benefits of Export Support Durable? Evidence from Tunisia," Working Papers P80, FERDI.

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