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The Pattern of Foreign Market Entry of Canadian Exporters


  • Sui, Sui
  • Yu, Zhihao


This paper employs a unique large-scale longitudinal (1997–2005) dataset to investigate the pattern of foreign market entry by 6,079 Canadian exporters. We have found that fewer firms are choosing the United States as their initial export destination. This trend suggests that a growing number of firms are not following the traditional stage model of internationalization. Furthermore, our results suggest that government support should be targeted towards young and small Canadian-controlled firms, since they are more likely to encounter barriers and gain benefits from exporting to a wider range of foreign markets.

Suggested Citation

  • Sui, Sui & Yu, Zhihao, 2012. "The Pattern of Foreign Market Entry of Canadian Exporters," MPRA Paper 41176, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:41176

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    References listed on IDEAS

    1. Sofronis K. Clerides & Saul Lach & James R. Tybout, 1998. "Is Learning by Exporting Important? Micro-Dynamic Evidence from Colombia, Mexico, and Morocco," The Quarterly Journal of Economics, Oxford University Press, vol. 113(3), pages 903-947.
    2. Statistics Canada, 2004. "Factors Determining the Success or Failure of Canadian Establishments on Foreign Markets: A Survival Analysis Approach," Analytical Studies Branch Research Paper Series 2004220e, Statistics Canada, Analytical Studies Branch.
    3. Frances Ruane & Julie Sutherland, 2005. "Ownership and Export Characteristics of Irish Manufacturing Performance," The Institute for International Integration Studies Discussion Paper Series iiisdp032, IIIS.
    4. Thierry Mayer & Gianmarco Ottaviano, 2008. "The Happy Few: The Internationalisation of European Firms," Intereconomics: Review of European Economic Policy, Springer;German National Library of Economics;Centre for European Policy Studies (CEPS), vol. 43(3), pages 135-148, May.
    5. Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
    6. Terence Fan & Phillip Phan, 2007. "International new ventures: revisiting the influences behind the ‘born-global’ firm," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(7), pages 1113-1131, December.
    7. Steven Globerman & Paul Storer, 2009. "Border Security and Canadian Exports to the United States: Evidence and Policy Implications," Canadian Public Policy, University of Toronto Press, vol. 35(2), pages 171-186, June.
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    Cited by:

    1. repec:pid:journl:v:55:y:2016:i:4:p:905-920 is not listed on IDEAS
    2. Sui Sui & Zhihao Yu, 2013. "Special Issue. Guest Editor: Zhihao Yu," Review of Development Economics, Wiley Blackwell, vol. 17(3), pages 510-522, August.
    3. Love, James H. & Roper, Stephen & Zhou, Ying, 2016. "Experience, age and exporting performance in UK SMEs," International Business Review, Elsevier, vol. 25(4), pages 806-819.
    4. Sui, Sui & Morgan, Horatio M. & Baum, Matthias, 2015. "Internationalization of immigrant-owned SMEs: The role of language," Journal of World Business, Elsevier, vol. 50(4), pages 804-814.

    More about this item


    Canadian exporters; United States; emerging market; foreign market entry; internationalization process; stage model;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada

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