Spatial exporters

Research, Article, Preprint English OPEN
Defever, F. ; Heid, B. ; Larch, M. (2015)
  • Publisher: Elsevier
  • Related identifiers: doi: 10.1016/j.jinteco.2014.11.006
  • Subject: Welt | Au├čenhandelsliberalisierung | firm-level customs data | F12 | C25 | Internationale Markteintrittsstrategie | export destination choice, spatial correlation, firm-level customs data, MFA/ATC quota removal | F13 | Auslandsmarkt | spatial correlation | export destination choice, spatial correlation, extended gravity, firm-level customs data, MFA/ATC quota removal | export destination choice | Welttextilabkommen | Exportindustrie | Entfernung | China | Kultur | MFA/ATC quota removal | HB | Chinesisch
    • jel: jel:F13 | jel:F12 | jel:C25
      ddc: ddc:330

In this paper, we provide causal evidence that firms serve new markets which are geographically close to their prior export destinations with a higher probability than standard gravity models predict. We quantify the impact of this spatial pattern using a data set of Chinese firms which had never exported to the EU, the United States, and Canada before 2005. These countries imposed import quotas on textile and apparel products until 2005 and experienced a subsequent increase in imports of previously constrained Chinese firms. Controlling for firm-destination specific effects and accounting for potential true state dependence we show that the probability to export to a country increases by about two percentage points for each prior export destination which shares a common border with this country. We find little evidence for other forms of proximity to previous export destinations like common colonizer, language or income group.
  • References (11)
    11 references, page 1 of 2

    Ahn, J., Khandelwal, A. K., and Wei, S.-J. (2011). The Role of Intermediaries in Facilitating Trade. Journal of International Economics, 84(1):73{85.

    Albornoz, F., Calvo Pardo, H. F., Corcos, G., and Ornelas, E. (2012). Sequential Exporting. Journal of International Economics, 88(1):17{31.

    Cameron, A. C. and Trivedi, P. K. (2005). Microeconometrics: Methods and Applications. Cambridge University Press, Cambridge.

    Roberts, M. J. and Tybout, J. R. (1997). The Decision to Export in Colombia: An Empirical Model of Entry with Sunk Costs. American Economic Review, 87(4):545{564.

    Santos Silva, J.M.C. and Tenreyro, S. (2006). The Log of Gravity. The Review of Economics and Statistics, 88(4):641{658.

    Upward, R., Bernhofen, D. M., and Wang, Z. (2011). Quota as a Sorting Machine: Quantity Restrictions and Price Adjustments of Chinese Textile Exports to the U.S. unpublished working paper.

    Wen, M. (2004). Relocation and Agglomeration of Chinese Industry. Journal of Development Economics, 73(1):329{347.

    White, M. and Gow, D. (2005). EU and China in `Bra Wars' Deal. The Guardian. September 6. Available from [accessed 11/09/2013].

    Wikipedia (2013). Multi Fibre Arrangement. [accessed 11/09/2013].

    Windmeijer, F. (2005). A Finite Sample Correction for the Variance of Linear E cient Two-Step GMM Estimators. Journal of Econometrics, 126(1):25{ 51.

  • Similar Research Results (1)
  • Metrics
    No metrics available
Share - Bookmark