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Exports and Information Spillovers

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  • Olarreaga, Marcelo

Abstract

Exporters’ performance in a particular market may affect their future exports to the rest of the world. Importers may base their future transaction decisions upon the information revealed by exporters’ past performance in other countries. Similarly, exporters acquire valuable information on foreign consumer tastes, product standards or customs administration that may profitably be used in future transactions with other countries. This paper estimates the large effects of these information spillovers across markets on the export patterns of four developing countries (Egypt, Korea, Malaysia and Tunisia). A dollar increase in exports to the United States generates on average an extra 2 to 14 cents of exports to the rest of the world in the next period. Social and ethnic networks seem to reinforce these information spillovers, especially in developing countries, where they appear to be geographically more concentrated. The exception is China and to some extent Hong Kong, probably reflecting a geographically more diversified migration pattern.

Suggested Citation

  • Olarreaga, Marcelo, 2000. "Exports and Information Spillovers," CEPR Discussion Papers 2560, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:2560
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Izquierdo, Alejandro & Morisset, Jacques & Olarreaga, Marcelo, 2003. "Information diffusion in international markets," Policy Research Working Paper Series 3032, The World Bank.
    2. Daude, Christian & Fratzscher, Marcel, 2008. "The pecking order of cross-border investment," Journal of International Economics, Elsevier, vol. 74(1), pages 94-119, January.
    3. James E. Rauch & Vitor Trindade, 2003. "Information, International Substitutability, and Globalization," American Economic Review, American Economic Association, vol. 93(3), pages 775-791, June.
    4. Alessandro Nicita & Marcelo Olarreaga & Isidro Soloaga, 2003. "The Region as an Export Platform to the World? The Case of Mercosur," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 40(121), pages 442-451.
    5. World Bank, 2007. "International trade and Climate Change : Economic, Legal, and Institutional Perspectives," World Bank Publications, The World Bank, number 6831, July.
    6. Alejandro Izquierdo & Jacques Morriset & Marcelo Olarreaga, 2003. "Difusión de la información en mercados internacionales," Research Department Publications 4336, Inter-American Development Bank, Research Department.

    More about this item

    Keywords

    Developing Countries; Export; Information Spillovers;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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