French Firms Penetrating Asian Markets

Role of Export Spillovers

In this study, we explore the role of export spillovers on the capacity of French firms to penetrate Asian markets. We confirm previous results, that is, the presence of other exporters raises the probability that firms start exporting a given product to a given country in the case of France. We find that export spillovers are more important for exports to Asia than to other destinations. Moreover, the presence of other exporters appears particularly beneficial to small and less productive firms. More intense benefits for start-up companies are observed in tough Asian markets characterized by low GDP per capita and tough administrative procedures on imports.