Information and Export Performance |
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Authors: | Alessandro Nicita Marcelo Olarreaga |
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Institution: | (1) Development Research Group (DECRG), The World Bank, 1818 H Street, NW, Washington, DC 20433, USA;(2) CEPR, London, UK |
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Abstract: | Exporters’ performance in a given market may affect their exports to the rest of the world. Importers base their future transaction
decisions upon the information revealed by exporter’s performance in other countries. This paper estimates significant effects
from these information spillovers on the export patterns of fourteen developing countries, and somewhat smaller effects for
a sample of exporters from six developed countries. On the other hand, it is in developed countries’ markets that the largest
information spillovers are generated. Indeed, increases in market share in the United States allows for significant increases
in exports to the rest-of-the world associated with information spillovers. But developing country markets could also generate
important amounts of information for regional exporters. Hong Kong is the top market in terms of generating information for
other East Asian exporters, and the Argentinean and Chilean markets play an important role for exporters from other Latin
American countries.
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Keywords: | export information spillovers developing countries |
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