Geographical and industrial spillovers in entry decisions across export markets

Jesús A. Mu Sepúlveda and Diego Rodr z

Applied Economics, 2015, vol. 47, issue 39, 4168-4183

Abstract: This article addresses sequential entry decisions in export markets. It focuses on externalities derived from previous export activity in countries close to those for which a potential entry decision is made ( geographical spillovers ) and externalities derived from previous presence of other firms in the same industry ( industrial spillovers ). The empirical analysis uses Spanish microdata for the period 2000-2010 in a firm decision model that also integrates country and industry characteristics. The results suggest that these two types of spillovers have a positive effect in explaining entry decisions in new export markets, though both are smaller in magnitude than the effects coming from previous presence in the same specific destination.

Date: 2015
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DOI: 10.1080/00036846.2015.1026582

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