Entry on difficult export markets by Chinese domestic firms: the role of foreign export spillovers
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.
|Date of creation:||28 Nov 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Fax: +32 10473945
Web page: http://www.uclouvain.be/ires
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Luis Araujo & Giordano Mion & Emanuel Ornelas, 2012.
"Institutions and Export Dynamics,"
CEP Discussion Papers
dp1118, Centre for Economic Performance, LSE.
- Sebastian Krautheim, 2007. "Gravity and Information: Heterogeneous Firms, Exporter Networks and the 'Distance Puzzle'," Economics Working Papers ECO2007/51, European University Institute.
- BARRIOS, Salvador & GÖRG, Holger & STROBL, Eric, .
"Explaining firms' export behaviour: R&D, spillovers and the destination market,"
CORE Discussion Papers RP
-1654, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Salvador Barrios & Holger Goerg & Eric Strobl, 2003. "Explaining Firms' Export Behaviour: R&D, Spillovers and the Destination Market," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(4), pages 475-496, 09.
- Brian Aitken & Gordon H. Hanson & Ann E. Harrison, 1994.
"Spillovers, Foreign Investment, and Export Behavior,"
NBER Working Papers
4967, National Bureau of Economic Research, Inc.
- Aitken, Brian & Hanson, Gordon H. & Harrison, Ann E., 1997. "Spillovers, foreign investment, and export behavior," Journal of International Economics, Elsevier, vol. 43(1-2), pages 103-132, August.
- Aitken, B. & Hanson, G.H. & Harrison, A.E., 1994. "Spillovers, Foreign Investment and Export Behavior," Papers 95-06, Columbia - Graduate School of Business.
- KOENIG, Pamina & MAYNERIS, Florian & PONCET, Sandra, .
"Local export spillovers in France,"
CORE Discussion Papers RP
-2225, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Wolfgang Hess & Maria Persson, 2011.
"Exploring the duration of EU imports,"
Review of World Economics (Weltwirtschaftliches Archiv),
Springer, vol. 147(4), pages 665-692, November.
- Hess, Wolfgang & Persson, Maria, 2010.
"The Duration of Trade Revisited: Continuous-Time vs. Discrete-Time Hazards,"
Working Paper Series
829, Research Institute of Industrial Economics.
- Hess, Wolfgang & Persson, Maria, 2010. "The Duration of Trade Revisited. Continuous-Time vs. Discrete-Time Hazards," Working Papers 2010:1, Lund University, Department of Economics.
- Wolfgang Hess & Maria Persson, 2012. "The duration of trade revisited," Empirical Economics, Springer, vol. 43(3), pages 1083-1107, December.
- repec:cup:cbooks:9780521681599 is not listed on IDEAS
- Duranton, Gilles & Martin, Philippe & Mayer, Thierry & Mayneris, Florian, 2010. "The Economics of Clusters: Lessons from the French Experience," OUP Catalogue, Oxford University Press, number 9780199592203, March.
- Matthieu Crozet & Pamina Koenig & Vincent Rebeyrol, 2008. "Exporting to Insecure Markets: a Firm-Level Analysis," Working Papers 2008-13, CEPII research center.
- repec:cup:cbooks:9780521887427 is not listed on IDEAS
- Guillaume Gaulier & Soledad Zignago, 2010. "BACI: International Trade Database at the Product-Level. The 1994-2007 Version," Working Papers 2010-23, CEPII research center.
- repec:cup:cbooks:9780521715348 is not listed on IDEAS
- 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.
When requesting a correction, please mention this item's handle: RePEc:ctl:louvir:2011041. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anne DAVISTER-LOGIST)
If references are entirely missing, you can add them using this form.