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Is Export Spillover Localized in C hina
Author(s) -
Bao Qun,
Shao Min,
Song Ligang
Publication year - 2014
Publication title -
review of development economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.531
H-Index - 50
eISSN - 1467-9361
pISSN - 1363-6669
DOI - 10.1111/rode.12080
Subject(s) - spillover effect , economics , economies of agglomeration , monetary economics , multinomial logistic regression , international economics , economic geography , international trade , econometrics , microeconomics , computer science , machine learning
The hypothesis of localized export spillover has been widely supported by the previous studies. Based on C hinese firm‐level data of more than 47,000 firms from 2000 to 2006, this paper investigates whether export spillover is localized in C hina. Drawing on the idea of revealed comparative advantage, six export spillover indicators are constructed to capture both the within‐ and between‐ provinces, cities as well as industries spillover effects. The multinomial logit model estimation results show that there is no sign of localized spillover effects despite the fact that domestic firms gain from export spillovers due to geographic and industrial agglomeration effects. This is especially true for those new entrants to export markets. The finding indicates that there may be export congestions resulting from over‐agglomeration of local exporters due to the rapid export expansion in C hina.