Networks and the dynamics of firms’ export portfolio

Juan de Lucio, Raúl Mínguez, Asier Minondo () and Francisco Requena Silvente
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Raúl Mínguez: Cámara de España

No 1513, Working Papers from Banco de España

Abstract: We use network-analysis tools to identify communities in the web of exporters' destinations. Our network-based community measure is purely outcome-based; it captures multilateral rather than bilateral dependence across countries; and it can be calculated at the industry level. We next use our network-based community measure as a predictor of additional countries chosen by firms expanding their export destinations portfolios. Using data on new Mexican exporters, the probability of choosing a new export destination doubles if it belongs to the same community of any of the firm’s previous destinations. The introduction of the network-based community variable improves the accuracy of the model by up to 19% relative to a model that only includes gravity variables. Industry-specific communities and general communities play similar roles in determining the dynamics of Mexican exporters' country portfolios.

Keywords: export market; network analysis; modularity; extended gravity; Mexico. (search for similar items in EconPapers)
JEL-codes: F1 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2015-06
New Economics Papers: this item is included in nep-bec, nep-cse, nep-int and nep-net
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:bde:wpaper:1513

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