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Entry and Survival in the Export Market: Spillovers from Foreign and Outward-Looking Domestic Firms in Ethiopia

Melaku Abegaz () and Sajal Lahiri

The European Journal of Development Research, 2020, vol. 32, issue 4, No 3, 847-872

Abstract: Abstract This paper examines spillovers from domestic-exporting and foreign-owned firms to the export entry and exit of local manufacturing firms in Ethiopia for the period 1996-2010. We find that downstream and upstream foreign-owned exporting firms improve the probability of domestic firms’ entering into export markets. Besides, foreign-owned exporting firms generate intraindustry spillovers that increase the export entry and survival rates of local firms. Spillovers from domestic exporters enhance the exporting likelihood of firms in input-supplying sectors. Moreover, exporting domestic and foreign-owned firms generate backward productivity spillovers that advance the export entry and survival of domestic firms through productivity gains.

Keywords: Manufacturing; Ethiopia; Spillovers; Export entry; Export survival; Foreign direct investment (search for similar items in EconPapers)
JEL-codes: F21 F23 L67 O55 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1057/s41287-019-00242-2

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The European Journal of Development Research is currently edited by Spencer Henson and Natalia Lorenzoni

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