Information and Export Performance
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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.
Keywordsexport information spillovers developing countries
JEL ClassificationF10 F13 F14
We would like to thank Simon Evenett, Robert Feenstra, Carsten Fink, Jean-Marie Grether, Olivier Lumenga-Neso, Jaime de Melo, Francis Ng, Garry Pursell, Maurice Schiff, Isidro Soloaga, David Tarr, Anthony Venables, and participants in seminars at the USITC and the World Bank for very helpful comments and suggestions. The views are the authors’ and do not necessarily reflect those of the institutions with which they are affiliated.
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