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Spatial Exporters

Author

Listed:
  • Fabrice Defever
  • Benedikt Heid
  • Mario Larch

Abstract

In this paper, we provide causal evidence that firms serve new markets which are geographically close to their prior export destinations with a higher probability than standard gravity models predict. We quantify the impact of this spatial pattern using a data set of Chi-nese firms which had never exported to the EU, the United States, and Canada before 2005. These countries imposed import quotas on textile and apparel products until 2005 and experienced a subsequent increase in imports of previously constrained Chinese firms. Controlling for firm-destination specific effects and accounting for potential true state de-pendence we show that the probability to export to a country increases by about two percentage points for each prior export destination which shares a common border with this country. We find little evidence for other forms of proximity to previous export destinations like common colonizer, language or income group.

Suggested Citation

  • Fabrice Defever & Benedikt Heid & Mario Larch, 2011. "Spatial Exporters," CESifo Working Paper Series 3672, CESifo.
  • Handle: RePEc:ces:ceswps:_3672
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp3672.pdf
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Thomas Chaney, 2014. "The Network Structure of International Trade," American Economic Review, American Economic Association, vol. 104(11), pages 3600-3634, November.
    2. Carrère, Céline & Strauss-Kahn, Vanessa, 2014. "Developing Countries Exports Survival in the OECD: Does Experience Matter?," CEPR Discussion Papers 10059, C.E.P.R. Discussion Papers.
    3. Lili Wang & Yong Zhao, 2013. "Does Experience Facilitate Entry into New Export Destinations?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 21(5), pages 36-59, September.
    4. Nicolas Berman & Vincent Rebeyrol & Vincent Vicard, 2019. "Demand Learning and Firm Dynamics: Evidence from Exporters," The Review of Economics and Statistics, MIT Press, vol. 101(1), pages 91-106, March.
    5. Defever, Fabrice & Heid, Benedikt & Larch, Mario, 2015. "Spatial exporters," Journal of International Economics, Elsevier, vol. 95(1), pages 145-156.
    6. Juan Lucio & Raúl Mínguez & Asier Minondo & Francisco Requena, 2016. "Networks and the Dynamics of Firms' Export Portfolio: Evidence for Mexico," The World Economy, Wiley Blackwell, vol. 39(5), pages 708-736, May.
    7. Hans-Jörg Schmerer & Luhang Wang, 2014. "Firm Performance and Trade with Low-Income Countries: Evidence from China," CESifo Working Paper Series 4934, CESifo.
    8. Hans-Jörg Schmerer & Luhang Wang, 2014. "Firm Performance and Trade with Low-Income Countries: Evidence from China," CESifo Working Paper Series 4934, CESifo.
    9. Regolo, Julie, 2017. "Manufacturing export diversification and regionalization of trade: Which destinations for newly exported goods?," International Economics, Elsevier, vol. 151(C), pages 26-47.
    10. Jaan Masso & Priit Vahter, 2012. "The Role Of Product Level Entry And Exit In Export And Productivity Growth: Evidence From Estonia," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 86, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    11. Eduardo Morales & Gloria Sheu & Andrés Zahler, 2014. "Gravity and Extended Gravity: Using Moment Inequalities to Estimate a Model of Export Entry," NBER Working Papers 19916, National Bureau of Economic Research, Inc.
    12. Antoine Berthou & Hélène Ehrhart, 2017. "Trade networks and colonial trade spillovers," Review of International Economics, Wiley Blackwell, vol. 25(4), pages 891-923, September.
    13. Facundo Albornoz & Ezequiel García Lembergman, 2015. "Importing After Exporting," Working Papers 122, Universidad de San Andres, Departamento de Economia, revised Jul 2015.
    14. Juan de Lucio & Raúl Mínguez & Asier Minondo & Francisco Requena, 2013. "The dynamics of firms’ export portfolio: A network analysis with an application to Mexico and Bulgaria," Working Papers 1316, Department of Applied Economics II, Universidad de Valencia.

    More about this item

    Keywords

    export destination choice; spatial correlation; firm-level customs data; MFA; ATC quota removal;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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