Arbeitspapier

Spatial exporters

In this paper, we provide evidence that expanding firms tend to serve new markets which are geographically close and culturally related to their prior export destinations. We quantify the impact of this spatial pattern using a Chinese firm-level data set. To ensure an exogenous set of potential new destinations (25 EU countries, US and Canada) and an exogenous timing of entry, we focus on firms that benefited from the abrupt end of the textile quota restrictions in 2005. Controlling for firm-product and destination specific effects and accounting for possible multiple new export destinations we show that the probability to export to a country increases by 15 to 38 percent for each prior export destination with a geographical or cultural link with this country.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 3672

Classification
Wirtschaft
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
Trade Policy; International Trade Organizations
Single Equation Models; Single Variables: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
Subject
export destination choice
spatial correlation
firm-level customs data
MFA/ATC quota removal
Exportindustrie
Chinesisch
Internationale Markteintrittsstrategie
Entfernung
Auslandsmarkt
Kultur
China
Welttextilabkommen
Außenhandelsliberalisierung
Welt

Event
Geistige Schöpfung
(who)
Defever, Fabrice
Heid, Benedikt
Larch, Mario
Event
Veröffentlichung
(who)
Center for Economic Studies and ifo Institute (CESifo)
(where)
Munich
(when)
2011

Handle
Last update
10.03.2025, 11:45 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Defever, Fabrice
  • Heid, Benedikt
  • Larch, Mario
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 2011

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