Spatial exporters

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 Chine...

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Main Authors: Defever, Fabrice, Heid, Benedikt, Larch, Mario
Format: Article
Published: Elsevier 2015
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Online Access:https://eprints.nottingham.ac.uk/34307/
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author Defever, Fabrice
Heid, Benedikt
Larch, Mario
author_facet Defever, Fabrice
Heid, Benedikt
Larch, Mario
author_sort Defever, Fabrice
building Nottingham Research Data Repository
collection Online Access
description 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.
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spelling nottingham-343072020-05-04T16:58:01Z https://eprints.nottingham.ac.uk/34307/ Spatial exporters Defever, Fabrice Heid, Benedikt Larch, Mario 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. Elsevier 2015-01-01 Article PeerReviewed Defever, Fabrice, Heid, Benedikt and Larch, Mario (2015) Spatial exporters. Journal of International Economics, 95 (1). pp. 145-156. ISSN 0022-1996 Export Destination Choice Spatial Correlation Extended Gravity Firm-level Customs Data MFA/ATC Quota Removal http://www.sciencedirect.com/science/article/pii/S002219961400138X doi:10.1016/j.jinteco.2014.11.006 doi:10.1016/j.jinteco.2014.11.006
spellingShingle Export Destination Choice
Spatial Correlation
Extended Gravity
Firm-level Customs Data
MFA/ATC Quota Removal
Defever, Fabrice
Heid, Benedikt
Larch, Mario
Spatial exporters
title Spatial exporters
title_full Spatial exporters
title_fullStr Spatial exporters
title_full_unstemmed Spatial exporters
title_short Spatial exporters
title_sort spatial exporters
topic Export Destination Choice
Spatial Correlation
Extended Gravity
Firm-level Customs Data
MFA/ATC Quota Removal
url https://eprints.nottingham.ac.uk/34307/
https://eprints.nottingham.ac.uk/34307/
https://eprints.nottingham.ac.uk/34307/