Export spillovers and export performance in China |
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| Institution: | 1. School of International Trade and Economics, Central University of Finance and Economics, 39 South College Road, Haidian District, Beijing 100081, PR China;2. Department of International Economics & Trade, Nanjing University, 22 Hankou Road, Nanjing, 210093, PR China;1. University of Western Australia, 35 Stirling Highway, Crawley, WA 6009, Australia;2. Stanford University, 520 Galvez Mall, CERAS Building, 5th Floor, Stanford, CA 94305-3084, USA;3. Central University of Finance and Economics, 39 Xueyuan South Road, Haidian District, Beijing 100081, China;1. Department of Marketing and Logistics Management, Chihlee University of Technology, Taiwan;2. Statistical Office, Ministry of the Transportation and Communications, Taiwan;3. Department of Applied Economics, National Chiayi University, Taiwan;1. Tsinghua University, China;2. School of Economics, Renmin University of China, 59 Zhongguancun Street, Beijing 100872, China;1. School of Economics, Senshu University, 2-1-1 Higashi-mita, Tama-ku, Kawasaki-shi, Kanagawa 214-8580, Japan;2. Research Department of Industrial Economy, Development Research Center of the State Council, R. 248, No. 225, Chaoyangmen Nei Dajie, Beijing 100010, China;3. Organisation for Economic Co-operation and Development, Structural Surveillance Division, Economics Department, 2 Rue André Pascal, Paris 75016, France |
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| Abstract: | This paper examines the local export spillover effect on the individual decisions to start exporting (the extensive margin) and export volume (the intensive margin), using a unique dataset of Chinese export firms, at the product-level and by destination country. Based on a gravity-type equation estimated at firm-level, we find that export spillovers positively influence not only the decision of a nearby firm to start exporting, but also the volume of the exporting. Several methods are used to verify the robustness of these results. In addition, we find that the effect of export spillovers is stronger when it is product-destination-specific than that when it is either product or destination-specific alone, and also stronger than that is in general. Geographically, local export spillovers exhibit spatial decay in China: the effect is stronger for firms located in the same city than it is for firms outside the city. Small and multi-product firms are more likely to be influenced by the local export spillovers, and their impact is stronger for firms exporting complex goods and exporting to easy-entry countries. Moreover, the export spillovers from private firms are the strongest, followed by foreign-invested firms with the effect generated by state-owned firms ranking last. |
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