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....

Full description

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

id	okr-10986-19746
recordtype	oai_dc
spelling	okr-10986-197462021-04-23T14:03:44Z Exports and Information Spillovers Nicita, Alessandro Olarreaga, Marcelo 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 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. 2014-08-27T13:58:57Z 2014-08-27T13:58:57Z 2000-11 http://documents.worldbank.org/curated/en/2000/11/717464/exports-information-spillovers http://hdl.handle.net/10986/19746 English en_US Policy Research Working Paper;No. 2474 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific Middle East and North Africa Egypt, Arab Republic of Korea, Republic of Malaysia Tunisia
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	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
spellingShingle	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 Nicita, Alessandro Olarreaga, Marcelo Exports and Information Spillovers
geographic_facet	East Asia and Pacific Middle East and North Africa Egypt, Arab Republic of Korea, Republic of Malaysia Tunisia
relation	Policy Research Working Paper;No. 2474
description	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.
format	Publications & Research :: Policy Research Working Paper
author	Nicita, Alessandro Olarreaga, Marcelo
author_facet	Nicita, Alessandro Olarreaga, Marcelo
author_sort	Nicita, Alessandro
title	Exports and Information Spillovers
title_short	Exports and Information Spillovers
title_full	Exports and Information Spillovers
title_fullStr	Exports and Information Spillovers
title_full_unstemmed	Exports and Information Spillovers
title_sort	exports and information spillovers
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2000/11/717464/exports-information-spillovers http://hdl.handle.net/10986/19746
_version_	1764440525917650944

Exports and Information Spillovers

Similar Items