Chinese Firms' Entry to Export Markets : The Role of Foreign Export Spillovers

In this paper, the effect of proximity to multinational exporters on the creation of new export linkages (the extensive margin of trade) is debated. Using panel data from Chinese customs for 1997-2007, the capacity for Chinese domestic firms to begin exporting new varieties to new markets is shown t...

Full description

Bibliographic Details
Main Authors:	Mayneris, Florian, Poncet, Sandra
Format:	Journal Article
Language:	en_US
Published:	Oxford University Press on behalf of the World Bank 2016
Subjects:	economic activity foreign markets export competitiveness foreign competitors regional trade trade policy investment climate
Online Access:	http://hdl.handle.net/10986/24607

id	okr-10986-24607
recordtype	oai_dc
spelling	okr-10986-246072021-04-23T14:04:23Z Chinese Firms' Entry to Export Markets : The Role of Foreign Export Spillovers Mayneris, Florian Poncet, Sandra economic activity foreign markets export competitiveness foreign competitors regional trade trade policy investment climate In this paper, the effect of proximity to multinational exporters on the creation of new export linkages (the extensive margin of trade) is debated. Using panel data from Chinese customs for 1997-2007, the capacity for Chinese domestic firms to begin exporting new varieties to new markets is shown to respond positively to the export activity of neighboring foreign firms. These spillovers are shown to be product and country specific. This conclusion is robust to fixed effects and instrumental variable specifications that control for both supply and demand shocks that could bias the estimations. The impact is sizable. The marginal impact of product-country-specific foreign export spillovers is five times as large as the effect of a 10 percent increase in the demand for the product in the destination country. Foreign export spillovers are also shown to be primarily limited to ordinary trade activities. Overall, our findings suggest that even for a country with an important cost-advantage such as China, there is room for initiatives from policy-makers that will diffuse best practices regarding export experience among exporters. 2016-07-05T18:37:35Z 2016-07-05T18:37:35Z 2015-01 Journal Article World Bank Economic Review 1564-698X http://hdl.handle.net/10986/24607 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Oxford University Press on behalf of the World Bank Publications & Research :: Journal Article Publications & Research China
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	economic activity foreign markets export competitiveness foreign competitors regional trade trade policy investment climate
spellingShingle	economic activity foreign markets export competitiveness foreign competitors regional trade trade policy investment climate Mayneris, Florian Poncet, Sandra Chinese Firms' Entry to Export Markets : The Role of Foreign Export Spillovers
geographic_facet	China
description	In this paper, the effect of proximity to multinational exporters on the creation of new export linkages (the extensive margin of trade) is debated. Using panel data from Chinese customs for 1997-2007, the capacity for Chinese domestic firms to begin exporting new varieties to new markets is shown to respond positively to the export activity of neighboring foreign firms. These spillovers are shown to be product and country specific. This conclusion is robust to fixed effects and instrumental variable specifications that control for both supply and demand shocks that could bias the estimations. The impact is sizable. The marginal impact of product-country-specific foreign export spillovers is five times as large as the effect of a 10 percent increase in the demand for the product in the destination country. Foreign export spillovers are also shown to be primarily limited to ordinary trade activities. Overall, our findings suggest that even for a country with an important cost-advantage such as China, there is room for initiatives from policy-makers that will diffuse best practices regarding export experience among exporters.
format	Journal Article
author	Mayneris, Florian Poncet, Sandra
author_facet	Mayneris, Florian Poncet, Sandra
author_sort	Mayneris, Florian
title	Chinese Firms' Entry to Export Markets : The Role of Foreign Export Spillovers
title_short	Chinese Firms' Entry to Export Markets : The Role of Foreign Export Spillovers
title_full	Chinese Firms' Entry to Export Markets : The Role of Foreign Export Spillovers
title_fullStr	Chinese Firms' Entry to Export Markets : The Role of Foreign Export Spillovers
title_full_unstemmed	Chinese Firms' Entry to Export Markets : The Role of Foreign Export Spillovers
title_sort	chinese firms' entry to export markets : the role of foreign export spillovers
publisher	Oxford University Press on behalf of the World Bank
publishDate	2016
url	http://hdl.handle.net/10986/24607
_version_	1764457173113372672

Chinese Firms' Entry to Export Markets : The Role of Foreign Export Spillovers

Similar Items