Chinese Firms' Entry to Export Markets : The Role of Foreign Export Spillovers

In this paper, the effect of proximity to multinational exporters on the creation of new export linkages (the extensive margin of trade) is debated. Using panel data from Chinese customs for 1997-2007, the capacity for Chinese domestic firms to beg...

Full description

Bibliographic Details
Main Authors: Mayneris, Florian, Poncet, Sandra
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2013
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2013/04/17532262/chinese-firms-entry-export-markets-role-foreign-export-spillovers
http://hdl.handle.net/10986/13204
id okr-10986-13204
recordtype oai_dc
spelling okr-10986-132042021-04-23T14:03:07Z Chinese Firms' Entry to Export Markets : The Role of Foreign Export Spillovers Mayneris, Florian Poncet, Sandra AGRICULTURAL PRODUCTS AGRICULTURE BENCHMARK BILATERAL TRADE BILATERAL TRADE FLOWS CAPACITY BUILDING CHANNELS COMPARATIVE ADVANTAGE COMPARATIVE ADVANTAGES CONSTRUCTION CONSUMERS DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DIRECT INVESTMENT DOMESTIC EXPORTERS DOMESTIC FIRMS ECONOMIC ACTIVITY ECONOMIC AGREEMENTS ECONOMIC GROWTH ECONOMIC POLICY ENDOGENOUS VARIABLES EXPORT EXPORT ACTIVITIES EXPORT ACTIVITY EXPORT CATALYSTS EXPORT DEMAND EXPORT EXPERIENCE EXPORT GROWTH EXPORT MARKETS EXPORT PERFORMANCE EXPORT PROCESSING EXPORT PROCESSING ZONES EXPORT PRODUCT EXPORT PROMOTION EXPORT PROMOTION POLICIES EXPORT TRANSACTION EXPORTING FIRMS EXPORTS EXTERNALITIES FOREIGN DEMAND FOREIGN EXPORT FOREIGN EXPORTS FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN MARKETS FOREIGN TRADE FRAGMENTATION OF PRODUCTION GDP GDP PER CAPITA GROWTH RATE IMPORTANT ROLE IMPORTED INPUTS IMPORTING COUNTRY IMPORTS INCOME INDUSTRIAL PRODUCTION INTERNATIONAL BUSINESS INTERNATIONAL DEMAND INTERNATIONAL ECONOMICS INTERNATIONAL TRADE IRON JOINT VENTURES LABOR MARKETS MANUFACTURING SECTOR MARKET SIZE MULTINATIONAL FIRMS NATURAL ENDOWMENTS POSITIVE EXTERNALITIES PRODUCTIVITY QUANTIFICATION TRADE LIBERALIZATION WAGES In this paper, the effect of proximity to multinational exporters on the creation of new export linkages (the extensive margin of trade) is debated. Using panel data from Chinese customs for 1997-2007, the capacity for Chinese domestic firms to begin exporting new varieties to new markets is shown to respond positively to the export activity of neighboring foreign firms. These spillovers are shown to be product and country specific. This conclusion is robust to fixed effects and instrumental variable specifications that control for both supply and demand shocks that could bias the estimations. The impact is sizable. The marginal impact of product-country-specific foreign export spillovers is five times as large as the effect of a 10 percent increase in the demand for the product in the destination country. Foreign export spillovers are also shown to be primarily limited to ordinary trade activities. Overall, our findings suggest that even for a country with an important cost-advantage such as China, there is room for initiatives from policy-makers that will diffuse best practices regarding export experience among exporters. 2013-04-18T16:34:36Z 2013-04-18T16:34:36Z 2013-04 http://documents.worldbank.org/curated/en/2013/04/17532262/chinese-firms-entry-export-markets-role-foreign-export-spillovers http://hdl.handle.net/10986/13204 English en_US Policy Research Working Paper;No. 6398 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific China
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic AGRICULTURAL PRODUCTS
AGRICULTURE
BENCHMARK
BILATERAL TRADE
BILATERAL TRADE FLOWS
CAPACITY BUILDING
CHANNELS
COMPARATIVE ADVANTAGE
COMPARATIVE ADVANTAGES
CONSTRUCTION
CONSUMERS
DEVELOPMENT ECONOMICS
DEVELOPMENT POLICY
DIRECT INVESTMENT
DOMESTIC EXPORTERS
DOMESTIC FIRMS
ECONOMIC ACTIVITY
ECONOMIC AGREEMENTS
ECONOMIC GROWTH
ECONOMIC POLICY
ENDOGENOUS VARIABLES
EXPORT
EXPORT ACTIVITIES
EXPORT ACTIVITY
EXPORT CATALYSTS
EXPORT DEMAND
EXPORT EXPERIENCE
EXPORT GROWTH
EXPORT MARKETS
EXPORT PERFORMANCE
EXPORT PROCESSING
EXPORT PROCESSING ZONES
EXPORT PRODUCT
EXPORT PROMOTION
EXPORT PROMOTION POLICIES
EXPORT TRANSACTION
EXPORTING FIRMS
EXPORTS
EXTERNALITIES
FOREIGN DEMAND
FOREIGN EXPORT
FOREIGN EXPORTS
FOREIGN FIRMS
FOREIGN INVESTMENT
FOREIGN INVESTORS
FOREIGN MARKETS
FOREIGN TRADE
FRAGMENTATION OF PRODUCTION
GDP
GDP PER CAPITA
GROWTH RATE
IMPORTANT ROLE
IMPORTED INPUTS
IMPORTING COUNTRY
IMPORTS
INCOME
INDUSTRIAL PRODUCTION
INTERNATIONAL BUSINESS
INTERNATIONAL DEMAND
INTERNATIONAL ECONOMICS
INTERNATIONAL TRADE
IRON
JOINT VENTURES
LABOR MARKETS
MANUFACTURING SECTOR
MARKET SIZE
MULTINATIONAL FIRMS
NATURAL ENDOWMENTS
POSITIVE EXTERNALITIES
PRODUCTIVITY
QUANTIFICATION
TRADE LIBERALIZATION
WAGES
spellingShingle AGRICULTURAL PRODUCTS
AGRICULTURE
BENCHMARK
BILATERAL TRADE
BILATERAL TRADE FLOWS
CAPACITY BUILDING
CHANNELS
COMPARATIVE ADVANTAGE
COMPARATIVE ADVANTAGES
CONSTRUCTION
CONSUMERS
DEVELOPMENT ECONOMICS
DEVELOPMENT POLICY
DIRECT INVESTMENT
DOMESTIC EXPORTERS
DOMESTIC FIRMS
ECONOMIC ACTIVITY
ECONOMIC AGREEMENTS
ECONOMIC GROWTH
ECONOMIC POLICY
ENDOGENOUS VARIABLES
EXPORT
EXPORT ACTIVITIES
EXPORT ACTIVITY
EXPORT CATALYSTS
EXPORT DEMAND
EXPORT EXPERIENCE
EXPORT GROWTH
EXPORT MARKETS
EXPORT PERFORMANCE
EXPORT PROCESSING
EXPORT PROCESSING ZONES
EXPORT PRODUCT
EXPORT PROMOTION
EXPORT PROMOTION POLICIES
EXPORT TRANSACTION
EXPORTING FIRMS
EXPORTS
EXTERNALITIES
FOREIGN DEMAND
FOREIGN EXPORT
FOREIGN EXPORTS
FOREIGN FIRMS
FOREIGN INVESTMENT
FOREIGN INVESTORS
FOREIGN MARKETS
FOREIGN TRADE
FRAGMENTATION OF PRODUCTION
GDP
GDP PER CAPITA
GROWTH RATE
IMPORTANT ROLE
IMPORTED INPUTS
IMPORTING COUNTRY
IMPORTS
INCOME
INDUSTRIAL PRODUCTION
INTERNATIONAL BUSINESS
INTERNATIONAL DEMAND
INTERNATIONAL ECONOMICS
INTERNATIONAL TRADE
IRON
JOINT VENTURES
LABOR MARKETS
MANUFACTURING SECTOR
MARKET SIZE
MULTINATIONAL FIRMS
NATURAL ENDOWMENTS
POSITIVE EXTERNALITIES
PRODUCTIVITY
QUANTIFICATION
TRADE LIBERALIZATION
WAGES
Mayneris, Florian
Poncet, Sandra
Chinese Firms' Entry to Export Markets : The Role of Foreign Export Spillovers
geographic_facet East Asia and Pacific
China
relation Policy Research Working Paper;No. 6398
description In this paper, the effect of proximity to multinational exporters on the creation of new export linkages (the extensive margin of trade) is debated. Using panel data from Chinese customs for 1997-2007, the capacity for Chinese domestic firms to begin exporting new varieties to new markets is shown to respond positively to the export activity of neighboring foreign firms. These spillovers are shown to be product and country specific. This conclusion is robust to fixed effects and instrumental variable specifications that control for both supply and demand shocks that could bias the estimations. The impact is sizable. The marginal impact of product-country-specific foreign export spillovers is five times as large as the effect of a 10 percent increase in the demand for the product in the destination country. Foreign export spillovers are also shown to be primarily limited to ordinary trade activities. Overall, our findings suggest that even for a country with an important cost-advantage such as China, there is room for initiatives from policy-makers that will diffuse best practices regarding export experience among exporters.
format Publications & Research :: Policy Research Working Paper
author Mayneris, Florian
Poncet, Sandra
author_facet Mayneris, Florian
Poncet, Sandra
author_sort Mayneris, Florian
title Chinese Firms' Entry to Export Markets : The Role of Foreign Export Spillovers
title_short Chinese Firms' Entry to Export Markets : The Role of Foreign Export Spillovers
title_full Chinese Firms' Entry to Export Markets : The Role of Foreign Export Spillovers
title_fullStr Chinese Firms' Entry to Export Markets : The Role of Foreign Export Spillovers
title_full_unstemmed Chinese Firms' Entry to Export Markets : The Role of Foreign Export Spillovers
title_sort chinese firms' entry to export markets : the role of foreign export spillovers
publisher World Bank, Washington, DC
publishDate 2013
url http://documents.worldbank.org/curated/en/2013/04/17532262/chinese-firms-entry-export-markets-role-foreign-export-spillovers
http://hdl.handle.net/10986/13204
_version_ 1764422967059546112