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

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  • Florian MAYNERIS

    () (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES) and Center for Operations Research and Econometrics (CORE))

  • Sandra PONCET

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

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.

Suggested Citation

  • Florian MAYNERIS & Sandra PONCET, 2011. "Export performance of Chinese domestic firms: the role of foreign export spillovers," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2011003, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  • Handle: RePEc:ctl:louvir:2011003
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    References listed on IDEAS

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    Cited by:

    1. Girma, Sourafel & Gong, Yundan & Görg, Holger & Lancheros, Sandra, 2015. "Investment liberalisation, technology take-off and export markets entry: Does foreign ownership structure matter?," Journal of Economic Behavior & Organization, Elsevier, vol. 116(C), pages 254-269.
    2. Cadot, Olivier & Fernandes, Ana M. & Gourdon, Julien & Mattoo, Aaditya, 2015. "Are the benefits of export support durable? Evidence from Tunisia," Journal of International Economics, Elsevier, vol. 97(2), pages 310-324.
    3. repec:bla:worlde:v:40:y:2017:i:12:p:2543-2563 is not listed on IDEAS
    4. Hu, Cui & Tan, Yong, 2016. "Export spillovers and export performance in China," China Economic Review, Elsevier, vol. 41(C), pages 75-89.
    5. Kuznetsova Maria, 2016. "Spatial structure and economic network formation of manufacturing exports in Russia," EERC Working Paper Series 16/08e, EERC Research Network, Russia and CIS.
    6. Cardoso-Vargas, Carlos-Enrique, 2016. "Does the Type of Neighbor Matter?: Evidence of heterogeneous Export Spillovers on Domestic Companies in Mexico," MPRA Paper 70212, University Library of Munich, Germany.
    7. Dominik Boddin & Horst Raff & Natalia Trofimenko, 2017. "Foreign ownership and the export and import propensities of developing-country firms," The World Economy, Wiley Blackwell, vol. 40(12), pages 2543-2563, December.
    8. Jarreau, Joachim & Poncet, Sandra, 2012. "Export sophistication and economic growth: Evidence from China," Journal of Development Economics, Elsevier, vol. 97(2), pages 281-292.
    9. Raff, Horst & Trofimenko, Natalia, 2013. "World market access of emerging-market firms: The role of foreign ownership and access to external finance," Kiel Working Papers 1848, Kiel Institute for the World Economy (IfW).
    10. Baltagi, Badi H. & Egger, Peter H. & Kesina, Michaela, 2017. "Determinants of firm-level domestic sales and exports with spillovers: Evidence from China," Journal of Econometrics, Elsevier, vol. 199(2), pages 184-201.
    11. Deborah L. Swenson & Huiya Chen, 2014. "Multinational Exposure and the Quality of New Chinese Exports," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 76(1), pages 41-66, February.
    12. repec:eee:quaeco:v:65:y:2017:i:c:p:107-113 is not listed on IDEAS
    13. 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.

    More about this item

    Keywords

    Export performance; spillovers; FDI; Sophistication;

    JEL classification:

    • F1 - International Economics - - Trade
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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