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Domestic Spillovers and Foreign Networks in Exporting

Shibi He () and Volodymyr Lugovskyy ()
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Shibi He: Indiana University

No 2018-005, CAEPR Working Papers from Center for Applied Economics and Policy Research, Department of Economics, Indiana University Bloomington

Abstract: We explore the effects of Domestic Spillovers (other domestic firms exporting a good to a given country) and Foreign Networks (links to other countries via firm’s trading partners) on the firm’s choice of new export destinations. By matching Colombian exporting and Chilean importing and exporting firms between 2007 and 2016, we show that both effects matter and that they amplify each other. Jointly these effects are more important than geographic proximity measures, import and export growth, and market size combined. Domestic spillovers are relatively more important, especially for identifying the persistent exporters, which export to a new destination for more than a year.

Keywords: Firm-level; Spillover; Networks; Trade (search for similar items in EconPapers)
JEL-codes: F1 L14 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int
Date: 2018-07
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