Exports and Information Spillovers

Exports and Information Spillovers

Exporters' performance in a particular market may affect their future exports to the rest of the world. Importers may base their future transaction decision on the information revealed by exporters' past performance in other countries....

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Bibliographic Details
Main Authors: Nicita, Alessandro, Olarreaga, Marcelo
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2014
Subjects:
BASE YEAR
BILATERAL TRADE
BUSINESS PARTNERS
COMMUNICATION COSTS
COMPARATIVE ADVANTAGE
CONSTANT MARGINAL COSTS
DATA SOURCES
DEVELOPED COUNTRIES
ECONOMETRIC ESTIMATES
ECONOMIES OF SCALE
EMPIRICAL ANALYSIS
ENDOGENOUS VARIABLES
EXPORTS
EXTERNALITIES
IMPORTS
INCOME
INSTRUCTION
INTERNATIONAL MARKETS
INTERNATIONAL TRADE
LEARNING
MARGINAL COST
MARGINAL COSTS
MULTIPLIER EFFECTS
NETWORKS
POLICY RESEARCH
POSITIVE EFFECTS
PRODUCTIVITY
QUALITY
SPILLOVERS
STANDARDS
STRUCTURAL CHANGE
TELECOMMUNICATION
TELECOMMUNICATIONS
UTILITY FUNCTION
Online Access:http://documents.worldbank.org/curated/en/2000/11/717464/exports-information-spillovers
http://hdl.handle.net/10986/19746
Description
Summary:Exporters' performance in a particular market may affect their future exports to the rest of the world. Importers may base their future transaction decision on the information revealed by exporters' past performance in other countries. Similarly, exporters acquire valuable information on foreign consumer tastes, product standards, or customs administration that may profitably be used in future transactions with other countries. the authors estimate the effects of these information spillovers across markets on the export patterns of four developing countries (Egypt, the Republic of Korea, Malaysia, and Tunisia). A dollar increase in exports to the United States generates on average an extra 2 to 14 cents of exports to the rest of the world in the next period. Social and ethnic networks seem to reinforce these information spillovers, especially in developing countries, where they appear to be geographically more concentrated. The exception is China and to some extent Hong Kong, probably reflecting a geographically more diversified migration pattern. The exchange of information among current and potentialexport markets can significantly affect a developing country's export performance. Bilateral information spillovers across markets are negligible or nonexistantfor exports from the United States, where there is less need to create a reputation in international markets. Similarly, Egypt's good export performancewould be more easily noticed in Argentina or India (where the market is small) than would increased exports to France or the United States.

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