PROGRESS IN GEOGRAPHY ›› 2019, Vol. 38 ›› Issue (5): 731-744.doi: 10.18306/dlkxjz.2019.05.010

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Impact of export spillovers on the entry of new firms into the export market

Canfei HE1,2(), Xuqian HU1,2, Qian LUO1,2   

  1. 1. School of Urban and Environmental Sciences, Peking University, Beijing 100871, China
    2. Peking University-Lincoln Institute Center for Urban Development and Land Policy, Beijing 100871, China
  • Received:2018-09-05 Revised:2019-02-03 Online:2019-05-28 Published:2019-05-28
  • Supported by:
    National Natural Science Funds for Distinguished Young Scholar, No. 41425001;Major Program of National Natural Science Foundation of China, No. 41731278


Export growth is a key driver for China's economic development. The entry of new export firms is an important indicator of export growth. The New Trade Theory believes that knowledge spillover brought about by agglomeration externalities is a crucial factor affecting the exporting decision making of firms. Global and local knowledge spillovers encourage firms to acquire necessary export knowledge and thus reduce their difficulty of entering export markets. Theories of evolutionary economic geography emphasize that cognitive proximity is the prerequisite for the validity of export spillovers. Global and local export experience and product proximity are the main contents of export spillovers. This study used China Customs Trade Data from 2002 to 2011 to analyze the impact of export spillovers on the entry of new firms into the export market. The results show that export spillovers can significantly increase the probability of new exporters entering the export market. Private firms are more likely to enter markets with stronger spillovers. Besides, export spillovers have a stronger role in promoting the entry of follower firms, especially domestic firms. State-owned collective enterprises emphasize the overflow of overall export experience, and private companies place more emphasis on product knowledge spillovers. Local spillovers are beneficial for the expansion of new exporting firms to new destination countries, while global spillovers are useful for new exporters expanding into new product areas. This study improved the research on the spatial dynamics of export firms, expanded the spatial dimension in which export spillovers affect export decisions, and helped deepen the understanding of China's trade market.

Key words: export spillovers, global-local interaction, entry of new export firms, China