French Firms at the Conquest of Asian Markets: The Role of Export Spillovers

In this study, we explore the role of export spillovers on the capacity of French firms to conquer Asian markets. We confirm, in the context of France, previous results emphasizing the positive impact of surrounding exporters on the probability that a firm starts exporting a given product to a given country. We find that export spillovers are more important for export starts to Asia than for export starts to other countries. Moreover, for the specific Asian destinations, we find evidence of a heterogeneous effect of export spillovers. The presence of surrounding exporting firms appears especially beneficial to small and less productive firms, and more intense for export starts to Asian countries characterized by low GDP per capita and tough administrative procedures on imports. Hence, export spillovers may help small firms to enter on the most difficult Asian markets.Export spillovers;agglomeration;market entry barriers