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Spatial Exporters

Fabrice Defever (), Benedikt Heid () and Mario Larch ()

No 3672, CESifo Working Paper Series from CESifo

Abstract: 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 Chi-nese 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 de-pendence 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.

Keywords: export destination choice; spatial correlation; firm-level customs data; MFA; ATC quota removal (search for similar items in EconPapers)
JEL-codes: F12 F13 C25 (search for similar items in EconPapers)
Date: 2011
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Related works:
Journal Article: Spatial exporters (2015) Downloads
Working Paper: Spatial Exporters (2011) Downloads
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